Daimler has to stop production due to finacial crisis .

Daimler Chrysler , Second largest car producer in the world will stop its production due to financial crisis. The German automaker will stop its production from 11 th of dec til beginning of January due to weak financial conditions.

Mercedes reported that they issued a profit warning on full years earning after posting a profit of 275 million dollars in the third quarter, reversing net loss of 1.9 billion dollars last year in the same quarter.

As well the German car producer based in Stuttgart, Germany reported that its revenue declined by 7 % to 30.5 billion in the quarter on declining sales in north America, compared to revenue of 32 billion dollars posted in the same period a year ago.

It is enormous how the financial crisis will effect others industries . This example shows that Mercedes has to stop its production for one months because there is no more demand for such a exclusive car. Its very difficult to invest in a new car in this kind of stressful financial period. Mercedes had to get rid of 10 000 part time workers in order to stay stabile.

This example shows that not only banks suffer from this, as well as any other company in any other industry company.

ROLLS ROYCE REDUCES JOBS AMID AVIATION INDUSTRY TURNDOWN

In addition to the big 2,300 job reduction this year, aircraft engine maker Rolls Royce has recently revealed that it will be cutting more jobs through the remainder of 2008 and up to 2,000 jobs throughout 2009 in the wake of the current economic slowdown.

As the crisis in the global economy deepens, worldwide travel is on a downward spiral and the aviation industry faces a steep upward slope to climb; airplane sales are on the decrease and hence Rolls Royce’s orders from Boeing and Airbus, in turn, are on a steady decline.

This job cut plan, however, will help to reduce costs for Rolls Royce and trim production output in order to manage and manoeuvre through these difficult times, as well as remain competitive and maintain innovation. The idea is to save cash in 2009 due to uncertainties. Cash flow always allows for flexibility and in these times, flexibility can be a luxury.

Rolls Royce is not alone and it seems evident that all industries are and will be affected by the present world financial crisis. British giant Aerospace (BAE) Systems is facing the same issues as Rolls Royce is up against as well. The root of the problem just may be a ‘greedy’ Anglo-Saxon model.

It is purely down to Keynesian demand side economics now. But history states that recession has to come and go and that it has a purpose, and that is to readjust inflation and interest rates in order for growth to kick off again. I predict that Rolls Royce’s engines will, once again, fly the friendly skies in style!

Hypo Real had to be rescued by other banks

Germany’s financial sector was in big crisis on Monday after Hyper Real Estate one of its biggest lenders, had to be rescued by other banks and the government to solve a €50bn liquidity crisis.
Shares in HRE dropped more than 70 per cent and other banking stocks went down after the intervention, the most serious sign of strain in Germany’s financial sector since the collapse of Lehman Brothers aggravated the global credit crisis this month.

The Hypo Real Estate Holding AG (is a holding company based in Munich, Germany which comprises a number of real estate financing banks. The company's activities span three sectors of the real estate market: commercial property, infrastructure and public finance, and capital markets and asset management.

HRE, one of Europe’s biggest commercial property and public sector lenders, was handed a €35bn liquidity lifeline by other German private sector banks, the Bundesbank and the European Central Bank. The lender is also selling €15bn of assets to cover its liquidity shortfall.
The urgent bail-out was agreed in the early hours of yesterday with Mr Steinbrück and Angela Merkel, German chancellor, in telephone contact with bankers and officials meeting in Frankfurt.

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