It is definitely crunch time for businesses to shape up or bail out or do what ever it takes to minimize losses and manage risks wisely. Whether your business is located in America, Asia or Europe the stock market is clearly on the decline. According to Thomas Mayer, the chief European economist at Deutsche Bank in London, due to fears of the United States going into recession the markets in Europe and Asia are pricing in a recession.
In response to the economic turmoil the Federal Open Market Committee (FOMC) gave a surprise base rate reduction. However, despite the interest cuts by US Federal Reserve the steep decline at Wall Street still continues so that it is expected that there will be more rate cuts by the end of the month.
Since a recession looms overhead if you haven’t been paying much attention to business matters lately now is the time to worry over things. As Nigel Gault of Gloabl Insight put it, “The evidence on the economy has deteriorated sharply, suggesting a recession is more likely than not, and if you’re in risk-management mode this is the risk to worry about.”
Originally posted on January 22, 2008 @ 6:48 pm