US President-elect Barack Obama has appointed a team of high-level advisers including billionaire investor Warren Buffett and Google chief executive Eric Schmidt to guide his thoughts on the economy ahead of taking office on January 20, The Telegraph reports.
Mr Obama’s team – to be called the Transition Economic Advisory Board (TEAB)– will meet for the first time on Friday to discuss the state of the economy and the prospect of taking early action ahead of his inauguration.
The President-elect will meet with the board in Chicago on Friday, before then giving his first press conference since being elected at 1.30pm local time (7.30pm GMT).
It is not known if he will use this opportunity to appoint his first Treasury Secretary – although speculation was mounting on Thurday night that he may well do so.
A STARK WARNING from the IMF that the world’s developed economies are collectively set to endure their first full-year contraction since the Second World War, triggering a global recession, sent shares plummeting again on both sides of the Atlantic, according to The Times.
In its bleakest assessment yet of rapidly worsening global prospects, the International Monetary Fund predicted that industrial economies as a whole will shrink through next year by 0.3%, in the worst such slump of the postwar era.
The IMF said that the toll imposed by the downturn across the West would sap the strength of the world economy and cut global growth next year to an anaemic 2.2%. That is down 0.8 points from its last forecast, made only a month ago, and is below the 2.5% threshold at which the world economy is judged to be in the grip of global recession.
SHARES IN BLACKSTONE, the private equity giant that floated on the New York Stock Exchange at the peak of the debt market boom last year, plunged amid fears that some of its majorinvestors may renege on promises to inject money into the company, The Independent reports.
Analysts have become increasingly nervous that some of the private equity industry's limited partners – which include pension funds and other institutional investors as well as rich individuals – will not be able to make good on the capital calls demanded of them, after suffering losses elsewhere amid the credit crisis.
That concern spilled over in discussions with Blackstone yesterday, as the company announced a $509.3m (£323m) net loss for the three months to the end of September, and warned that the economic downturn was taking a toll on its portfolio of companies and on its hedge funds business.
0207 484 9793
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m