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.

Ariane makes final launch of 2008

Europe's Ariane 5 rocket has wrapped up its 2008 campaign with another dual launch from the Kourou spaceport.

The vehicle was carrying two satellites into orbit for the Eutelsat company.

The Hot Bird 9 and W2M platforms were put on a path to geostationary orbits, to provide a mix of TV, radio and other telecommunications services.

It was the sixth flight for an Ariane 5, in a year that also saw the rocket start to service the International Space Station (ISS).

Its primary role, though, will continue to be as launcher of commercial telecommunications satellites.

Lift-off for the Eutelsat mission was delayed by technical problems and left the ground at 2235 GMT, about three-quarters of an hour later than planned.

It is the first time that two platforms belonging to one of the major operators have been launched on the same rocket.

Eutelsat CEO Giuliano Berretta is a big admirer of the "excellent" Ariane; he is a frequent customer.

But in a wide-ranging interview ahead of Saturday's flight, he said satellite operators wanted to see more competition among launchers, to bring down prices.

Export controls

At the moment, he believes there are too few rockets to choose from.

"We would like to buy Chinese rockets, for instance," he said.

"They're very good, very safe; they're constructed for human flight after all. But we're in a situation today where you cannot launch satellites with American components using Chinese rockets. It is against the ITAR restrictions of the United States."

The International Traffic in Arms Regulations (ITAR) are designed to stop sensitive US defence technologies getting into the wrong hands.

Satellite operators, in particular, have been put under close scrutiny ever since a spacecraft carrying encryption technology was destroyed on launch in China and not all the debris was recovered.

Some manufacturers are now promising to build satellites free of all US components. Certainly, Mr Beretta is supportive of moves within the US itself to have ITAR reviewed.

He is waiting to see how the new Obama administration will act on the issue; although, it has to be said, it was the previous Democratic (Clinton) administration that put the ITAR focus very squarely on space services.

Growth markets

As chairman of the European Satellite Operators Association, it is in Mr Beretta's brief to take on the big issues affecting his industry.

In recent months, this has meant battling proposed changes to EU telecoms regulations designed to tidy up and free up spectrum for emerging technologies, in order to ensure the unique position of satellites is recognised.

The association has been concerned at what it sees as an attempt by Brussels in some of this exercise to usurp matters normally left to the International Telecommunication Union, the UN body that oversees radio spectrum regulation.

In Mr Beretta's line of fire has been the suggestion that satellite operators might have their frequencies reviewed within just a few years.

"It is impossible," he said. "Satellites are living longer; their lifetime is now normally 15 years. We need stability in the rules otherwise it will kill the economics of the satellite. Once they are up in space we cannot send someone up to change them."

The combined launch mass of the Hot Bird 9 and W2M satellites is just over eight tonnes. The Hot Bird will be serving primarily TV services to western Europe, North Africa and the Middle East.

The W2M will serve TV and also data services to what Eutelsat calls its "second continent" - eastern Europe, including Russia. The region is experiencing rapid growth.

"Today, television is our biggest market; 75% of our business is TV. But in the future, other activities will increase, such as addressing the digital divide with small terminals that will get broadband internet everywhere," said Mr Beretta.

"Then there are the mobile systems where satellites can complement GPS and Galileo services, where you determine your position and thanks to that you get sent information - where the local hotels and restaurants are, etc. This is info-mobility."

Saturday's Ariane 5 mission marks the 42nd launch of Europe's workhorse rocket. In March, it lofted the "Jules Verne" freighter to the International Space Station.

Next year's highlights include the dual launch of two European Space Agency telescopes - Herschel and Planck.

Both will be sent out to an observing position some 1.5 million km from Earth, to study the Universe at far-infrared and microwave wavelengths.

IMF urges spending to spur growth

More spending by governments will be needed to stimulate worldwide economic growth, the head of the International Monetary Fund (IMF) has told the BBC.

Dominique Strauss-Kahn said he feared measures announced by the Group of 20 nations last month would not be enough.

The IMF has already cut its forecast for global growth next year, and he said the next projection, due in January, would be even worse.

Mr Strauss-Kahn spoke of "2009 as really being a bad year".

"I'm specially concerned by the fact that our forecast, already very dark... will be even darker if not enough fiscal stimulus is implemented," he said in an interview with BBC Radio 4.

'Less bad solution'

He said it would take a spending stimulus equivalent to about 2% of global Gross Domestic Product, or about $1.2 trillion (£800bn), to make a real difference.

The level of debt in the UK was "disturbing", he said, but he added that given the choice between increasing the deficit and not fighting the recession, he favoured the "less bad solution".

He described European Central Bank chief Jean-Claude Trichet's warning that eurozone governments must keep a lid on borrowing as "noble".

"He's the head of the central bank - it's his job to say things like that," Mr Strauss Kahn said.

"We are in the biggest crisis we have experienced for 60 or 70 years and we have to take that into account," he added.

In November, the IMF lowered its global economic growth forecast to 2.2% from 3%.

Last week, Mr Strauss-Kahn said the IMF could cut its 2009 forecast for China to around 5% amid an "unprecedented" global slowdown.

Strong dollar hits Oracle profits

The business software manufacturer Oracle's profit for the three months to the end of November have slipped.

Net income only fell $7m (£4.7m) from the same period last year to $1.3bn, but it was nonetheless the first time it had not grown for three years.

Oracle said its profits would have been better if the US dollar had not strengthened so much in the quarter.

It said that if currency rates had been the same as last year its profits would have grown 11%.

"They are managing through this downturn relatively well, but they're not immune for a slowdown," said Jeff Gaggin at Avian Securities.

Oracle's revenue rose 6% during the three month period, which was worse than had been expected.

US financial watchdog boss named

Mary Schapiro has been named the next head of the US financial watchdog, the Securities and Exchange Commission.

President-elect Barack Obama officially nominated Ms Schapiro, whose role must be confirmed by the Senate.

Mr Obama said she would "crack down on the culture of greed and scheming that has led us to this day of reckoning".

The watchdog faces growing criticism for its failure to protect investors - particularly over its role in the alleged $50bn fraud by Bernard Madoff.

A former SEC commissioner, Ms Schapiro is currently head of the Financial Services Regulatory Authority.

Mr Obama said that under her leadership, the SEC would "protect investors, consumers and our entire economy from fraud and manipulation by an irresponsible few".

Madoff scandal

She previously chaired the Commodity Futures Trading Commission and served for six years as an SEC commissioner under Presidents Ronald Reagan, George H W Bush and Bill Clinton.

Ms Schapiro is well-respected in Washington circles as a regulator and is considered an effective, if somewhat low-key, administrator.

Barbara Roper, of the Consumer Federation of America, said that Ms Schapiro would bring "significant administrative experience" to the job.

That would be useful "given that we're looking at what is essentially a broken agency", she said.

'Grave concerns'

The SEC has been buffeted by criticism for failing to detect signs that major Wall Street banks were in trouble before the financial crisis erupted and for possibly lax oversight and enforcement in other areas.

As the scandal involving Mr Madoff stunned Wall Street, revelations have surfaced that staff at the SEC repeatedly failed over the course of a decade to fully investigate credible allegations against him.

SEC chairman Christopher Cox said on Tuesday he was "gravely concerned" by the breakdown in oversight and ordered the agency's inspector general to investigate what went wrong.

Senator Charles Schumer, a member of the Senate's banking committee said Ms Schapiro was "the kind of strong and experienced regulator that we very much need in these times".

"I believe her nomination could be approved quickly and without controversy in the Senate," he added.

Panasonic set to buy rival Sanyo

Japanese electronics group Panasonic has offered to buy rival Sanyo for 806.7bn yen ($9bn; £6bn).

The two firms said in a joint statement they had to take "drastic action" to boost revenue growth.

Panasonic, a leading flat TV maker, is offering 131 yen per Sanyo share, and major shareholders, including Goldman Sachs, have agreed to sell up.

Panasonic is interested in Sanyo's green energy businesses, such as solar panels and batteries.

It said in a statement it "will consider various options including a possible investment of around 100bn yen in order to achieve the synergy of both companies".

Goldman Sachs initially rejected Panasonic's lower offers.

But the investment bank decided to tender its Sanyo stake to Panasonic after reporting its first quarterly loss since going public.

Recent problems

Sanyo has been facing problems in recent years, cutting thousands of jobs and selling unprofitable operations.

Recently it has been hit by a stronger yen, rising material costs and falling gadget prices.

The same factors also contributed to a drop in Panasonic profit, as the company cut its annual profit forecast by 90% because of the global economic downturn.

But Panasonic is less dependent on exports to the US than Sanyo, a factor which has helped it do better than some other rivals in Japan.

Analyst Kazumasa Kubotaat Okasan Securities said that despite the high cost, "in the longer term the acquisition is absolutely an advantage for Panasonic".

The two companies have historical ties, with their founders being brothers-in-law.

Polaroid in bankruptcy protection

Camera-maker Polaroid has filed for US Chapter 11 bankruptcy protection amid allegations of fraud by the founder of its parent group.

Polaroid has been owned by Petters Group Worldwide since 2005, which was established by Tom Petters.

Mr Petters is now "under investigation for alleged acts of fraud that have compromised the financial condition of Polaroid," the firm said.

Polaroid said neither itself or its bosses were under investigation.

Authorities believe that Tom Petters, the founder of Peters Group, was running a £3bn fraud scheme.

But Mr Petters, who is now in custody, has maintained his innocence.

Petters Group and its venture capital unit filed for Chapter 11 bankruptcy protection in October.

Instant photography

Polaroid said the restructuring shouldn't hit its day-to-day operations, and it is "planning for new product launches in 2009".

"Polaroid has entered bankruptcy with ample cash reserves sufficient to finance the company's reorganization under Chapter 11," it said.

Polaroid is best know for inventing instant photography.

But it stopped making the instant cameras about two years ago due to falling sales in the face of the growing popularity of digital cameras.