The scale of the global down-turn was dramatically emphasised yesterday with the announcement of more than 70,000 job cuts across the world, reports The Times .
In America five leading US companies sacked a total of just over 45,000 workers, yet more evidence that the financial crisis that erupted on Wall Street two years ago has now infected the whole of the corporate world.
Billionaire hedge fund manager John Paulson has made a £100m profit by betting that the Royal Bank of Scotland's share price would fall dramatically, according to calculations by The Guardian, continuing the debate about the impact of short-selling on bank stocks.
Paulson who is reported to have made more than $3bn by betting against the US housing market, is now profiting from positions placed on gambling that bank shares would drop in the aftermath of the market turmoil caused by the collapse of the sub-prime mortgage industry.
A spokesman for Paulson refused to comment on the profit but said: "We made our position available because the FSA requested it. Beyond that, we don't discuss our portfolio."
Circular shareholders of beleaguered fund manager New Star have revealed the firm has lost £17.2m on betting the wrong way on an interest rate hedge, according to The Telegraph.
New Star highlighted the losses in its circular to shareholders sent on 22 January about its proposed delisting, following a debt-for-equity swap with its banking syndicate last month.
The company issued a statement warning that shareholders may not receive anything from the ongoing sale to rival fund manager Henderson.
New Star said that if a deal goes ahead, all of the proceeds would be needed to repay its debt.
"Therefore it is not certain that any of the transaction will lead to a significant return, if any, to current shareholders," New Star said. The company's net debt stands at about £240m.IFAonline
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created