European data pointed toward deeper recession and General Electric reported a 44 percent drop in quarterly profit on Friday as U.S. President Barack Obama met with congressional leaders over his $825 stimulus proposal, according to Reuters. British data confirmed the economy had gone into recession for the first time since 1991 when GDP contracted a larger-than-expected 1.5 percent in the last quarter of 2008 compared with the previous three months. Euro zone services and manufacturing activity contracted at a slightly slower pace in January, though surveys remained in recessionary territory, bolstering expectations the European Central Bank will cut interest rates again in March. Spanish unemployment surged to a nine-year high at nearly 14 percent. "There is some hope here that the worst is over, but we don't expect any sharp upturns soon," said Chris Williamson, chief economist at Markit, which conducts the euro zone Purchasing Managers Index. "The environment as we move into 2009 is extremely adverse." Stocks continued to slip. The Dow was down 1.3 percent and European stocks were off less than 1 percent. Japan's Nikkei closed 3.8 per cent lower.
