Economic Crisis | featured news

WASHINGTON (Reuters) - The number of workers lining up for jobless benefits surged last week, while new housing starts and permits hit record lows in December, pointing at an acceleration in the economy's downward spiral.

Microsoft Corp posted quarterly results that missed Wall Street expectations, announced it would cut up to 5,000 jobs and said it could no longer offer profit forecasts for the rest of the fiscal year.

Sony Corp. slashed its annual earnings forecast Thursday, projecting its first net loss in 14 years on slumping sales, a strong yen and restructuring costs.

Germany's largest retailer, Metro, is planning to cut 15,000 jobs or 5% of its workforce due to the economic slowdown.

Taiwan hands out shopping vouchers to its citizens in a bid to stimulate the island's economy.

In China, where many businesses count on a New Years shopping boom for a big share of annual sales, the global slowdown hurts and could further depress its falling growth rate.

Miriam Gorman wanted to retire more than a year ago, but steep financial losses in her retirement savings mean the 71-year-old bookkeeper now plans to work on indefinitely.

Venture-capital investment dropped 30% in the fourth quarter to its lowest level since 2005.

Consumer prices fell by a slightly smaller-than-expected margin in December, according to government data on Friday that showed a sagging economy was exerting downward pressure on prices and raising the specter of deflation.

A divided Senate has approved President-elect Barack Obama's request for $350 billion in unspent financial bailout funds.