Global Watch

ING, the Dutch financial services group has announced that it will cut 1,600 or 15 per cent of jobs from its US insurance arm in a move designed to save between $250 million and $300 million a year.

Argentina has imposed sweeping banking controls in an effort to staunch an exodus of deposits and head off a collapse of the financial system. Meanwhile, the IMF has said that it would not make a $1.26 billion loan installment to Argentina, which is due in the middle of the month on time.

Samsung Electronics and Hynix, numbers one and three in the global memory chip industry, have sharply increased their semi conductor prices, fueling optimism that the crisis-hit industry could be on the road to recovery.

Government surveys have shown deepening pessimism among Japan's business community as corporate profits plunged in the third quarter and capital expenditure barely registered a rise. Manufacturers are taking the brunt of the weak economic environment, with their pre-tax profits posting third largest decline since 1975, while their capital expenditure fell for the first time in six months.

Moody's investor service has downgraded Japan's credit rating, the third agency to do so in a span of one week, citing the government's rising debt and dearth of solutions to revive the economy.

US Steel, the nation's biggest steel maker, has launched talks with other steel producers about restructuring plans that could involve mergers and plant shutdowns.

Bridgestone, the Japanese tyremaker, has said that it would inject $1.3bn in equity capital to rescue Bridgestone Firestone, its beleaguered US subsidiary, which is reeling under growing litigation expenses and restructuring costs following a costly tyre recall.

Russia, the world's second-largest oil producer, has agreed to cut its oil exports by 150,000 barrels a day from January 1, following pressure from the OPEC.