Cessna company loses 2,200 jobs

US firm Textron, world's leading maker of corporate jets, has expanded its job cuts to 2,200 amid global downturn.

The maker of Cessna aircrafts and Bell helicopters said the figure included previously announced cuts in its Cessna and Bell divisions.

Textron, which employs 44,000 workers worldwide, did not rule out "further headcount reductions" and other cost-saving measures.

The company also said it would narrow its finance operations.

Textron now expects profit from its manufacturing segment to be in the range of $300m (£200m) to $330m in the fourth quarter, down from previously forecasted $400m.

For the whole company, it forecasts a net loss of 81 to 91 cents per share.

Many companies around the world have been forced to announce huge job cuts and revise down their outlooks amid falling demand as customers pare all but essential spending.

Oil falls on slowing demand signs

Oil prices have fallen on negative corporate reports and new signs that the global energy demand is deteriorating further.

News that crude imports to China, the world's second biggest energy consumer, fell in November to the lowest level this year, has dampened the mood.

Reports, such as Japanese carmaker Toyota's forecast of a historic annual loss, also put pressure on oil prices.

US light, sweet crude for February delivery fell $2.45 to trade at $39.91.

London Brent crude fell $2.55 to $41.45.

"I think the concerns about economic weakness still seem to be overshadowing the entire complex," said Phil Flynn, an analyst at Alaron Trading.

Delayed effect

Opec, the oil cartel, said last week it was going to cut production by 2.2m barrels per day to boost crude prices.

But some analysts say markets are sceptical about whether members of the cartel will be able to comply.

Oil prices have fallen more than $100 a barrel since July, when they reached a peak of $147.

"There's so many prompt barrels sitting around that that's really sitting on the market right now, especially the near contracts," said Michael Lynch, president of Strategic Energy & Economic Research.

"The cuts are really going to have an effect somewhere around February, March."

Irish move to recapitalise banks

The Irish Government has announced plans to recapitalise the country's three biggest banks.

A total of 5.5bn euro will be injected into the Allied-Irish Bank, the Bank of Ireland and the Anglo-Irish Bank in return for shares.

Anglo-Irish will receive 1.5bn euro in return for 75% shares with an annual fixed dividend to government of 10%.

The government will give 2bn euro each to Bank of Ireland and Allied Irish Bank for an annual dividend of 8%.

They will also receive 25% voting rights on their respective boards.

There have been widespread calls for the scheme to be dependent on changes to the management of the banks.

However, Taoiseach Brian Cowen said that would not be a precondition.

A lack of liquidity has made it increasingly difficult for the three banks to lend money to their customers.

Mr Cowen said the scheme would send a strong signal to the markets about the stability of the Irish financial system.

Tata 'to inject cash into Jaguar'

Tata Motors, the owner of Jaguar Land Rover, is to inject "tens of millions" of pounds into the British carmaker, according to the Financial Times.

A spokesman for Tata Motors did not deny the report.

A cash injection by the Indian owner would give the UK government more time to decide whether to use public money to bail-out the company.

Business Secretary Lord Mandelson had cast doubt on a bail-out, saying the state was a "lender of last resort".

Debasis Ray, head of corporate communications for Tata, did not not deny the report but would not say how much money would be injected.

"It is our company and we are running a business," he said.

"Discussions with the government, however, are confidential and cannot be revealed. We have to run the company and are doing so to the best of our abilities."

State aid

The carmaker has asked the government for financial support and its case has been backed by unions which say the industry needs help.

Labour peer Lord Bhattacharyya had suggested ministers were discussing a £667m loan package for Jaguar.

But Lord Mandelson said that Tata group must "look to their own resources."

Jaguar Land Rover has been hit hard by a dramatic slump in sales that has affected carmakers across the world.

In the US, the government has agreed to a $17.4bn (£11.6bn; 12.4bn euros) bail-out package for its auto industry.

In the UK, the Confederation of British Industry has said urgent government loans are needed to preserve 800,000 UK jobs in the carmaking industry. The Unite union says tens of thousands of skilled jobs are "hanging by a thread".

Toyota braced for historic loss

Japan's biggest carmaker Toyota has forecast its first annual loss in 71 years due to plummeting sales and a surge in the value of the yen.

The firm said it expected a loss of 150bn yen (£1.1bn) in yearly operating profits - from its core operations.

Japan also posted a trade deficit of $2.5bn (£1.7bn) in November as exports fell at a record rate.

The rising yen saw export levels down 26.7% from a year earlier, the ministry of finance said.

The carmaker recorded an operating profit of 2.27 trillion yen last year.

Toyota said it still expected to make a profit on a net level for the year ended March but has cut its forecast sharply to 50bn yen, down from a previous estimate of 550bn yen.

It is the second profit warning by Toyota in less than seven weeks.

The latest estimate is far lower than its net profit of 1.7 trillion yen earned the previous year.