International wrap: GM heading for a crash?

GM looks like it is headed for a dust up with the European Commission, with EU Industry Commissioner Guenter Verheugen saying that the way GM was "dealing with the issue of Europe is not acceptable". GM���s top brass had warned that its European divisions could collapse within weeks, putting 300,000 European jobs at risk, without further help from European governments.

The EC has called for an emergency meeting of EU states with GM sites, to find out what GM���s plans are, and whether the troubled US carmaker intends to abandon its European operations. Britain, Belgium, Poland, Germany, Spain and Sweden host GM production facilities, while some other EU states host suppliers. Meanwhile, Germany���s GM subsidiary Opel may have to go the Swedish way and file for insolvency, as the German government seemed reluctant to give more bail-outs to the subsidiary. Talking of bailouts, the UK government���s stake in Lloyds Banking group looks set to rise to 70%, after prolonged negotiations over the terms of the government insuring around GBP 250 billion of Lloyds toxic assets, mostly from the HBOS books.

Cola and Ads

WPP, the world���s second largest ad agency showed a 3.8% rise in full year profits to GBP 747 million, and a 2.8% rise in revenue. However, it warned of a fall in revenue of 2% in 2009. WPP shares perked up at the agency���s strong results, WPP���s chief Sir Martin Sorrell has outlined plans to cut up to 2000 jobs over the year, a focus on new media revenues, and to raise its revenues from emerging markets, including India and China.

While Sir Martin said that India and China are a cause for concern, the growth potential is still high. In another sign of economic activity, Coca Cola said it would invest USD 2 billion in a new plant and distribution facilities in China, in addition to the USD 2.4 billion for Huiyuan Juice Group. There were concerns that Coca Cola would not go through with its takeover of Hiuyuan. However both companies said there have been no change in plans. The deal is pending Chinese government approval. Coca Cola���s CEO reaffirmed the Cola giant���s commitment to China.

Gender Shock

The International Labour Organisation has said that more women than men are expected to lose jobs in the economic crisis in 2009. In its Global Employment Trends report, the ILO said unemployed women can rise by 7.4 %, or 22 million, higher than the 7% rate projected for men.

Women, according to ILO constitute 40.4 % of the global workforce. The ILO has also warned that job losses will affect women more in developing economies, in Latin America and the Caribbean, and also in the poor economies as the global recession spreads across to sectors that employ a lot of women.