Share prices crumbled again today as recession stalked the US economy on still more bleak economic news and as governments mobilised to confront the coming downturn.
European exchanges fell hard shortly after the start of trade on Wall Street, where gloom deepened on news that the current banking and credit crisis had taken a sharp bite out of the manufacturing sector.
The Federal Reserve said US industrial production plunged 2.8 per cent in September, the steepest decline since 1974.
"Today's industrial production report was one of the worst ever," said Aaron Smith on Economy.com.
A separate report by the Philadelphia Federal Reserve on factory activity in the mid-Atlantic eastern region also showed extremely weak conditions. The index plunged 41 points ? its biggest drop ever ? to minus 37.5, the worst level since 1990.
"Recession is on its way," said Carl Weinberg, chief economist at High Frequency Economics.
"The seeds of recession germinated during the (credit) crisis and the likelihood is that most of the world ? although not China ? will be in recession long after the uncertainty about the world's banking sector has dissipated."
The heavy falls on US, European and Asian exchanges yesterday and today occurred in the absence of major finance sector catastrophes, suggesting that investor jitters now stem from the likelihood of recession in the United States and Europe.
In fact, two key interbank lending rates, Libor and Euribor, eased further on today despite the sharp losses on world stock markets, an indication that banks were becoming less reluctant to lend money among themselves.
Bank skittishness over the past few weeks, when lenders were weighed down by soured mortgage-related debt, had contributed to an acute credit crisis that threatened the health of the global financial system.
In Europe today, the London FTSE 100 index of leading shares fell 5.35 per cent to close at 3,861.39 points, while in Paris the CAC 40 lost 5.92 per cent to finish at 3,181. The Frankfurt Dax closed 4.91 per cent in negative territory at 4,622.81.
Elsewhere there were declines of 5.69 per cent in Amsterdam, 6.54 per cent in Brussels, 3.26 per cent on the Swiss Market Index, 4.11 per cent in Madrid and 6.78 per cent in Milan.
Both of Russia's main stock markets dropped more than nine per cent today after steep falls in the United States and Asia added to investor concerns about plunging oil prices.
The headline index on the dollar-denominated RTS exchange shed 9.52 per cent to close at 713.90 points, while the benchmark index on the rouble-denominated MICEX market dropped 9.11 per cent to close at 626.85 points.
The day's rout began in Asia, where the Tokyo exchange gave up 11.4 per cent, its worst showing in more than two decades.
Elsewhere, Hong Kong lost 4.8 per cent, Seoul sank 9.4 per cent, Mumbai shed 2.11 per cent and Sydney tumbled 6.7 per cent.
* AFP
Under 19 Cricket World Cup, Asia Qualifier
Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman
UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Abu Dhabi Grand Slam Jiu-Jitsu World Tour Calendar 2018/19
July 29: OTA Gymnasium in Tokyo, Japan
Sep 22-23: LA Convention Centre in Los Angeles, US
Nov 16-18: Carioca Arena Centre in Rio de Janeiro, Brazil
Feb 7-9: Mubadala Arena in Abu Dhabi, UAE
Mar 9-10: Copper Box Arena in London, UK
HWJN
%3Cp%3EDirector%3A%20Yasir%20Alyasiri%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Baraa%20Alem%2C%20Nour%20Alkhadra%2C%20Alanoud%20Saud%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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The%20National%20selections
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THE SPECS
Engine: 1.5-litre
Transmission: 6-speed automatic
Power: 110 horsepower
Torque: 147Nm
Price: From Dh59,700
On sale: now
Palestine and Israel - live updates
Company%20Profile
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Mohammed bin Zayed Majlis
Killing of Qassem Suleimani
Zayed Sustainability Prize
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Biography
Favourite drink: Must have karak chai and Chinese tea every day
Favourite non-Chinese food: Arabic sweets and Indian puri, small round bread of wheat flour
Favourite Chinese dish: Spicy boiled fish or anything cooked by her mother because of its flavour
Best vacation: Returning home to China
Music interests: Enjoys playing the zheng, a string musical instrument
Enjoys reading: Chinese novels, romantic comedies, reading up on business trends, government policy changes
Favourite book: Chairman Mao Zedong’s poems
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
UAE currency: the story behind the money in your pockets
In numbers
1,000 tonnes of waste collected daily:
- 800 tonnes converted into alternative fuel
- 150 tonnes to landfill
- 50 tonnes sold as scrap metal
800 tonnes of RDF replaces 500 tonnes of coal
Two conveyor lines treat more than 350,000 tonnes of waste per year
25 staff on site
