NPR 2008-12-12

Giant Bank of America is the latest financial firm to announce major job cuts. The Charlotte-based bank which is in the process of merging 1 with Merrill Lynch, said today it plans to cut 30, 000 to 35, 000 jobs over the next three years. Tony Plath is a professor of finance at the University of North Carolina. He says while Bank of America hasn't said yet which jobs will be cut, some employees may be safer than others. “Bank of America is following on the heels of other big banks like JPMorgan and like Citigroup that have essentially 2 pared their operations and their administrative 3 staffing areas. The areas that are behind the scenes and don't face the customer are the areas that are at greatest risk." In a statement, Bank of America blamed the job cuts on its merger 4 with Merrill Lynch and on the weak economy. The company expects to identify which positions will be eliminated by early next year. All told BofA hopes to save around seven billion dollars to the job cuts.

US trade deficit 5 widened unexpectedly in October. NPR's Giles Snyder has more.

Many economists 6 had expected the trade gap to narrow because of lower oil prices. Oil prices did drop by a record amount, but that was offset 7 by a record surge in the volume of oil imports. The Commerce Department says the gap for October grew to more than 57 billion dollars, that's 1.1% higher than September's imbalance. American farm products and manufacture goods took a hit overseas and even as overall imports fell in October, those from China increased 2. 8%. The politically sensitive trade gap with Beijing also set a record at 28 billion dollars. But in a sign the global recession is catching 8 up with China's export-driven economy, government figures released this week show Chinese exports fell for the first time in almost seven years. Giles Snyder, NPR News, Washington.

President-elect Barack Obama calls the government short-term auto 9 bailout bill an important step to prop 10 up the struggling industry. NPR's Scott Horsley reports.

The 14-billion-dollar federal loan to the auto industry faces an uphill battle in the US Senate. President-elect Barack Obama says he shares the frustration 11 many Americans feel with the mistakes the industry's made in the past. But he says the government should provide short-term relief for automakers. At the same time, it demands reform from the industry going forward. "At this moment of great challenge, for our economy, we can not simply stand by and watch this industry collapse 12. Doing so would lead to a devastating 13 ripple 14 effect throughout our economy." Mr. Obama noted 15 that the Senate will be considering the auto rescue package at a time when US unemployment claims are at a 26-year high. Scott Horsley, NPR News, Chicago.

On Wall Street, the Dow Jones Industrial Average closed down 196 points today ending the session at 8, 565. The NASDAQ lost 57 points to close at 507. The S&P 500 dropped more than 25 points.

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Pakistani intelligence officials say a suspected US missile strike has killed six people near the Afghan border. Officials say the identity of those killed was not immediately known. Intelligence officials are quoted as saying the missile was apparently 16 launched from a pilotless drone and targeted militants 17 at a part of Pakistan that has been seen as a sanctuary 18 for members of al-Qaeda. It was the second suspected strike by a US drone this month. In the past three months, there have been a number of missile strikes by the US in tribal 19 regions and nearby areas against suspected al-Qaeda targets.

Snow is making its way across the south. It's the latest in an active weather pattern for that region. From member station WBHM in Birmingham, Alabama, Andrew Yeager reports.

Houston has seen snow, as has New Orleans with several inches forecast. The storm will then rake over Mississippi, Northern Alabama and Northern Georgia. Sand trucks around Birmingham are gearing up to battle icy roadways. Jim Stefkovich with the National Weather Service in Birmingham says it is unusual to have snow this early. "We usually see it during the period of winter months especially as we get to January, February, not out of question, but pretty rare.” The region has already been dealing 20 with heavy rain, thunderstorms and tornadoes 21, when tornadoes torn through an Alabama elementary school early Wednesday morning. But once the snow moves through though, it’ll be back to sunny skies and temperatures in the 50s and 60s by the weekend. For NPR News, I’m Andrew Yeager in Birmingham, Alabama.

Federal Reserve says US households will be pulling in the reins 22 on their spending as they grappled with the worsening economy and fears of job loss. Fed said today households cut back on their debts for the first time on record in the third quarter with overall consumer debt levels falling 0. 8%.