U.S. markets slide Friday
NEW YORK, Nov. 14 (UPI) -- U.S. markets slid sharply Friday on negative news from Sun Microsystems Inc. and the Federal Home Loan Mortgage Corp.
Sun Microsystems said it would trim its workforce by 5,000 to 6,000 jobs. In Washington, Freddie Mac reported its liabilities exceeded its assets by $13.8 billion. The company requested $14 billion from the U.S. Treasury -- part of a deal made when the government seized control of Freddie Mac in September.
By close, the Dow Jones industrial average lost 3.47 percent, or 337.94 points, to 8,497.94. The Standard & Poor's 500 fell 4.17 percent, 38.00 points, to 873.85. The Nasdaq composite index lost 79.85 points, or 5 percent, to 1,516.85.
On the New York Stock Exchange, 623 stocks advanced and 2,447 declined on a volume of 9.7 billion shares traded.
The benchmark 10-year U.S. Treasury bond rose 31/32 to yield 3.735 percent.
The dollar was mixed. The euro fell to $1.2691, compared to $1.2853 Thursday. Against the Japanese yen, the dollar fell to 97.10 yen, from 97.82 yen Thursday.
In Tokyo, the Nikkei average rose 2.72 percent, up 223.75 points to 8,462.39.
The FTSE 100 index in London rose 1.53 percent, up 63.76 points to 4,232.97.
Recession official in Eurozone
BRUSSELS, Nov. 14 (UPI) -- The 15-country region of the Eurozone has officially slid into a recession after two straight quarters of a shrinking gross domestic product, statistics show.
Eurostat reported the gross domestic product in the Eurozone contracted 0.2 percent in the third quarter. The figures are frequently revised and the Organization for Economic Cooperation and Development recently forecast a 0.5 percent drop in the GDP for the quarter, and an even sharper decline for the fourth quarter, the Financial Times reported Friday.
"The data confirmed that the Eurozone is much weaker and more vulnerable than most people had thought," said Mario Annunziata, chief economist at Unicredito Group.
"What is most worrying is that the recession started very early on in the crisis without policymakers realizing it," he said.
"There has been an excessive degree of complacency, which implies that the policy response in Europe is well behind the curve," he said.
The economy of the larger 27-nation region called EU27 also shrank in the third quarter, declining 0.2 percent. The EU27 gross domestic product was flat in the second quarter, however, technically implying the EU27 region is not yet in a recession, commonly described as two consecutive quarters of contraction.
Aflac CEO would reject golden parachute
COLUMBUS, Ga., Nov. 14 (UPI) -- Aflac Chief Executive Officer Dan Amos said he would forfeit a $13 million severance package in his contract if he were to be fired by the supplemental insurer.
Known as a golden parachute, Amos's contract calls for the huge bonus if the health and life insurance company were sold or if he were fired, USA Today reported Friday.
"If they don't think I'm doing a good job, they don't have to worry about paying me off," Amos told USA Today.
Golden parachutes came under intense criticism as Congress was debating the $700 billion financial bailout package. Many wondered how a CEO could be fired and leave a company in shambles, while still receiving a huge severance package.
Amos has been Aflac CEO for almost nearly 20 years and was the first CEO to have his pay subjected to a non-binding shareholder vote.
He receives a salary of $4.3 million a year, but bonus pay and stock options in 2006 and 2007 topped $14 million, the newspaper reported.
Google to launch verbal Internet searches
MOUNTAIN VIEW, Calif., Nov. 14 (UPI) -- Voice-recognition software added to the iPhone's search system takes U.S. Internet giant Google a step closer to solving a key goal, a company official said.
Google could launch the free software though Apple's iTunes store on Friday, The New York Times reported.
While not 100 percent accurate, the software makes it possible to ask the phone to research questions on the Internet. Typing queries could fall by the wayside for consumers who would prefer to speak into their phones questions like, "Where's the nearest Italian restaurant?" or "What's the score of the Yankee game?" the Times said.
The software could also link Google into a new revenue stream as it pitches the service to advertisers, the Times said.
One of the system's features allows the search to identify the location of the caller, so the search can highlight local businesses where applicable, the Times said.
The key goal is to figure out the best way to make Internet queries and get information to consumers.
"Solving those two problems in a world-class way is our goal," said Vic Gundotra, the head of Google's mobile business division.
