Wall Street Watch: Italy Takes Legislative Action, Employers Don’t Like Full Time
Italy’s (NYSE:EWI) senate approved its 2012 budget bill with new austerity measures. It now goes to the house of parliament for final approval and then Italy’s chamber of deputies for a Saturday vote. This will pave the way to for Prime Minister Silvio Berlusconi’s resignation, which is likely to happen this weekend. His successor could be Mario Monti.
Chinese (NYSE:FXI) banks issued over 586 billion yuan ($2.78 billion) in new loans during October. This number exceeded expectations and may signal the government could implement an easing policy to support the economy. As compared to the previous year, October’s lending increased by CNY17.5 billion, according to the People’s Bank of China data.
Widespread flooding has brought disruptions and significant damage to more than a dozen hard disk drive factories. According to a new International Data Corporation (IDC) report, this will have a direct impact on worldwide PC shipments through 2012’s first half.
In 2011’s first half, Thailand (NYSE:THD) accounted for 40-45 percent of worldwide HDD production but now it’s almost half due to the floods. The industry will also likely face work stoppages from poor access and power outages. The floods’ total damage to HDD industry factories will be unknown until the flood waters retreat.
Employers are wary about hiring permanent staff after feeling burned from the costs of laying off workers, according to a Reuters article. David Arkless, president of global corporate and government affairs at ManpowerGroup (NYSE:MPG) said on Thursday, “What has happened in this recession is that the psychology of hiring has completely changed.”
Don’t Miss: Here’s Why Job Stocks are Soaring Now.
In the past, firms hired temporary workers at the beginning of a recovery and slowly added more permanent staff as the economy improved. Not so today even within growing sectors in companies. Firms that had been hit with downsizing costs in the last few years are finding it easier to hire and fire temporary workers than going through permanent staff layoffs.
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