Inflation plummets
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Inflation fell by it’s biggest amount in six years further locking in hopes for a 100 basis point cut by the Reserve Bank this week.
Economic data also confirmed manufacturing fell each of the last six months to a record low as the declining economic growth further confirms a sharpening contraction.
Some economists are now predicting levels around 2.50% to 2.75% by the middle of 2009 as Australia verges on recession.
Japan join Europe in recession
Japan announced today they had entered recession after seeing a contraction in the economy for the second quarter in a row.
Japan’s gross domestic product contracted by 0.1% between July and September as the second biggest economy slowed amid the global financial crisis.
Only last week Europe announced they had fallen into recession after the powerhouse German economy was announced in recession a day prior.
Australian Banks to cull jobs
Australian banks are about to hit the panic button with a new host of job cuts across the sector.
The biggest cuts have been flagged with 2000 job cuts coming from the Westpac & St George merger that was approved by shareholders today.
The National Australia Bank yesterday cut 179 technology jobs, while ABN Amro will cut 150 jobs as part of a review by the Royal Bank of Scotland.
A host of other financial institutions such as Commonwealth Bank, Suncorp, Merrill Lynch and Macquarie Bank have either frozen recruitment or indicated job cuts are likely.
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