Word: demand
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...nation became the first to lose its government to the global financial crisis. Addressing the press, Iceland's Prime Minister Geir Haarde announced the resignation of his cabinet and the collapse of the current coalition government. The Conservative leader said that he could not "accept the Social Democratic demand that they would lead the government...
...Fiat with Chrysler together is an excuse for letting tens of thousand of people go. The same would be true with a Pfizer deal to pick up Wyeth.These mergers do more to destroy the overall economy than they do to create new products and services which might help restart demand from customers and haul the economy out of its hole...
...Still, the transition from an outward-oriented growth model won't be easy. Though consumer spending has remained healthy - retail sales grew 19% in the fourth quarter - economists don't think the average Chinese has a big enough wallet to make up for weak demand overseas. "The reliance on the U.S. consumer as the buyer of last resort is going to have to change," says Michael Buchanan, chief Asia economist at Goldman Sachs in Hong Kong. He says "China has a long way to go in adjusting" to this fundamental change in the world economy...
...unexpected signs of life. Industrial production revived slightly in December, and loan growth surged. Merrill Lynch said in a report that the fourth quarter of 2008 and this current quarter could be "the trough of this growth cycle," as government stimulus and loose monetary policy begin to boost domestic demand. The data gave enough hope to Credit Suisse's Tao to convince him to keep his 8% GDP growth estimate for 2009. "Double-digit growth won't come back in the next two to three years," says Tao, but the country is still better off than most. "China...
...their 35-hour cake and eat 25% bonus time too. "Rather than increasing the set week to 37, 39, or 40 hours - and have to raise fixed salaries proportionally - it's more logical to stay at 35 hours, and go beyond or below it with affordable extra-time as demand surges or decreases," says Zenevre, who is also head of the Lorraine regional section of France's General Confederation of Small- and Medium-Sized Businesses, the nation's largest employer category. "This flexibility is particularly valuable with the recession setting in and really disrupting demand...