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January 28th, 2009
01:02 PM ET

Financial Dispatch: Boeing jettisons workers

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Andrew Torgan
CNN Financial News Producer

Aviation giant Boeing is adding to the steady drumbeat of layoffs, announcing today it will cut a total of 10,000 jobs – up from the 4,500 it said it would cut earlier this month. Boeing also reported an unexpected fourth-quarter loss and forecast 2009 earnings that are well below Wall Street estimates as it grapples with a dip in demand for its planes amid the ongoing recession.

Wells Fargo reported a $2.6 billion fourth-quarter loss this morning, hurt by its acquisition of Wachovia and rising credit costs. But excluding a host of charges, many of them related to the merger, earnings beat Wall Street’s estimates. The company also said it would not cut its dividend - adding it has no plans to ask for any more bailout money from the federal government. Wells Fargo received $25 billion last year from the Treasury Department.

The Federal Reserve wraps up its two-day meeting about what to do with interest rates this afternoon. But that's probably two more days than the central bank needed. With the Fed having already cut its key interest rate to near zero last month, there is little suspense about what the central bank will announce. In fact, the Fed said in its statement last month that it would likely keep rates near zero "for some time" due to the weakness in the economy.

And after four consecutive days of declines, gas prices rose 2-tenths of a cent overnight to $1.842 a gallon. 4 states have regular unleaded gas prices of $2 and higher. The highest gas prices are in Alaska ($2.532). 46 states and the District of Columbia have regular unleaded gas prices below $2. The cheapest gas prices are in Wyoming ($1.509).


Filed under: Andrew Torgan • Economy • Finance • Gas Prices • Oil • Wall St.
soundoff (4 Responses)
  1. Gerard Meyer

    I am very surprised that after ditching us in the economical morass, suddenly the Republicans legislators would suddenly become intelligent and can pretend to know what President Obama should do and not do to save us from where they incompetently drove us!

    But I am also worried that the President’s team can pretend to know so quickly what we should do right now when nobody is yet really sure of the factual damages and the extent of all the potential consequences it might trigger…

    For example how can we just talk of the Federal budget’s deficit without disclosing the additional compounded figures for every deficit we as a nation have also in each and all individual states: in order to publish at last the total Dollar amount of the crisis; and then maybe we all will have a better idea of the abysmal hole we need to patch in a nonpartisan manor.

    Then and only then what ever congress will pass could really make senses.

    Let not hide this beast in the murky waters of the financial Loch Ness, tell us the truth and do not legislate based on bias guesstimates.

    Gerard

    January 28, 2009 at 5:04 pm |
  2. Mary

    I believe that Wells Fargo and other banks will be asking for more bail out money. There should be a way to have the money actually reduce individual mortgage balances. This would put more money into the average American household right away. I hope that Congress has the banks agree to restructure individual homeowner mortgages with TARP or stimulus funds before the next tidal wave of ATL's (Assets Turned Liability) hits.

    January 28, 2009 at 4:11 pm |
  3. Annie Kate

    Is there anyone hiring out there? Seems to me that would be newsworthy amid all the layoffs. Is there just a crumb of good economic news you can throw our way??

    January 28, 2009 at 1:43 pm |
  4. Michelle

    Has there every been a time when there have
    been such massive layoffs. Even Best Buy and
    Target are cutting jobs as well. Boeing laying off
    so many is more bad news on a daily basis.

    January 28, 2009 at 1:09 pm |