By: Daniel Trotta

NEW YORK (Reuters) – drive to save the U.S. auto makers mired in partisan disputes, lost Wednesday around the impact of China and Europe as a serious economic recession, employment and economic slowdown in the world.

The House approach on whether to provide up to 1.4 billion U.S. dollars (950 million U.S. dollars in bridge loans or credit lines, car manufacturers have been striving for a 3 31) to vote. In return, auto manufacturers will give the Government the provisions of the shares equal to 20 per cent.

However, some Republican congressmen threatened to delay or block the plan, even a little help support, Detroit can not guarantee that enough Republican votes in the Senate in order to ensure its adoption. The White House said he hopes to reach an agreement with Congress on Wednesday to complete.

Bankruptcy or failure of the General Motors Corporation (gr. signal to noise ratio:), Ford Motor (F signal to noise ratio:) or Chrysler CBS. UL certification will not only endanger the jobs and billions of dollars of financial instruments, according to experts, has come to add another recession like the one the world's financial crisis is very high.

"The U.S. auto industry collapsed by default lead to more than 10 billion U.S. dollars in corporate bonds, credit default swaps and other financial instruments," Michigan Democratic Senator Carl Levin said in a statement to Reuters. "Another one grenade launch, our credit markets.

Dow Jones. Dow 0. 8 times the S & P 500 Index. Index fell 1. A 2 percent as oil prices and other commodity prices, energy, mining and materials stocks surge, which offset the prospects for Detroit's rescue panic. European stock markets. To the GMT time flat, Japan's stock market. The Nikkei closed 3. 2%.

Job losses, reducing the output

The business world has lost its response to the decline in demand, employment opportunities. Rio Tinto (Rio. ax:) (Rio. long:) said that the elimination of 14000 people, with the Swedish SKF Corporation (SKFb. charts:), is the world's largest bearing manufacturers have already announced 2,500 job cuts.

A survey found that a reduction in the U.S. economy the United States. In next year's 1 percentage point. Pimco mutual fund managers, chief executives predicted in 2009 the possibility of zero growth, and said still too early to say, the market has hit bottom.

"It baffles me that people feel confidence to the bottom, said:" Mohamed Erian, who is responsible for helping the world's largest bond fund manager 800 billion dollars in assets, told Reuters Investment Summit prospects. "We are now seeing is a very rough visit will continue until 2009. We are studying the secret funds."

China has promised to take new action to restore after the November economic data show that exports and unexpected weakness in domestic demand. In the meantime, China's trading partners in Europe, decline in industrial production report.

"The global demand for Chinese goods are disappearing, said:" Gene Ma, in the China Economic Monitoring in Beijing, the chief economist at consulting firm. "Second, the credit freeze in the importing country, it is difficult for Chinese exporters to sell abroad."

Senior Chinese leaders pledged to increase spending, reduce taxes, to encourage fourth-largest economy, domestic demand in the world.

European analysts said that in November and December will be the deterioration of the global financial crisis has entered the latest sign of economic recession or slowdown in major economies.

"Industrial production has plunged into a severe recession the euro zone, which indicates that four-quarter GDP may be reduced, but also in Italy, France and Germany announced that, based on current assumptions," said Holger Schmieding, economist at Bank of America.

(Reuters bureau report, worldwide, Steve Orlofsky, Brian Moss, Gary Hill edit)

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