BUSINESS BRIEFS
Markets in Asia show resilience; Toyota off 9.2%
Advertiser Staff and News Services
HONG KONG — Asian markets were mixed today but rebounded from early lows amid grim profit forecasts from Toyota and other companies as well as sluggish U.S. economic data.
But several of the region's bourses showed surprising resilience — notably in Hong Kong, South Korea and Taiwan — as lower prices lured investors.
In Tokyo, the Nikkei 225 stock average pared earlier losses to close down 316.14 points, or 3.6 percent, to 8,583. Investor sentiment took a hit after Japan's top automaker Toyota reduced its annual forecast to a third of what it was a year ago. Its shares plunged 9.2 percent.
BANK OF ENGLAND SLASHES RATE TO 3%
LONDON — The Bank of England slashed its key interest rate by 1.5 percentage points yesterday to its lowest in more than 50 years in a dramatic bid to cushion the coming recession, while the European Central Bank settled for a more conservative half-point trim.
The British central bank's move to bring the base rate down to 3 percent — the biggest single-day cut in 27 years — caught markets by surprise, and economists were divided over whether it was a bold pre-emptive step, or simply a sign that the bank had waited too long to address the crisis.
FIDELITY TO LAY OFF NEARLY 1,300
BOSTON — Fidelity Investments said yesterday it will cut nearly 1,300 jobs this month, with more layoffs to come early next year, in response to declining markets that have eroded mutual fund assets along with the fees Fidelity earns from its core business.
Layoff notices will go out to about 2.9 percent of Fidelity's overall workforce of 44,400. The cuts will be spread across the company's far-flung U.S. operations, affecting management positions as well as lower-level jobs.
JAPAN AIRLINES NET UP, REVENUE DOWN
TOKYO — Japan Airlines Corp. said profits climbed in the July-September quarter even as its business performance worsened, as it booked higher special profits and lower extraordinary expenses for the period.
The airline said net profit for the fiscal second quarter climbed to $413 million from $118.9 billion a year earlier.
But revenues slipped 6 percent, costs rose on restructuring and fuel charges, and its operating profit plunged by 60 percent, to $271 million.
MATTEL TO CUT 1,000 JOBS WORLDWIDE
NEW YORK — Mattel Inc. said yesterday it is cutting about 1,000 positions worldwide because of the economic downturn that is clouding the holiday outlook for toy makers.
Mattel said the positions amount to 3 percent of its worldwide workforce and will reduce its professional and management staff by 8 percent.
