NightBlogger

Bloomberg — China’s manufacturing contracted by the most on record last month as the global financial crisis cut demand for exports, a second survey showed. The CLSA China Purchasing Managers’ Index fell to a seasonally adjusted 45.2 in October from 47.7 in September, CLSA Asia-Pacific Markets said today in an e-mailed statement. A government-backed survey, released on Nov. 1, also showed a record contraction, adding to concern that the world’s fastest-growing economy may slump. Australia also reported today that manufacturing shrank by a record, as the crisis rips across the Asia Pacific. “The very sharp fall in the October PMI confirms that China is more integrated into the global economy than ever,” said Eric Fishwick, head of economic research at CLSA in Singapore. “Chinese manufacturers are seeing their order books cut, both at home and abroad, as the world economy falls into recession.” More

The nation’s second-largest bank by assets said Monday its profit fell 41 percent, as losses in its struggling mortgage operations were offset by business in other parts of the company. The company more than tripled the amount it set aside for bad loans to $5.83 billion, up from $1.81 billion a year ago, largely for consumer and commercial portfolios directly tied to the housing market, including home equity, residential mortgages and homebuilding. The figure surged to $6.01 billion in the first quarter. Net charge-offs, loans it doesn’t think are collectable, jumped to $3.62 billion, up from $1.5 billion a year ago, reflecting housing market deterioration and slowing economic conditions, the company said. Bank of America has said it plans to cut about 7,500 jobs as it integrates the company into its own operations. The job cuts amount to about 12.5 percent of the combined companies’ mortgage, home equity and insurance businesses. More