By Adam Haigh Dec. 11 (Bloomberg) -- European stocks fell as concern that the economic slowdown from China to America is deepening weighed on automakers, overshadowing a rally in oil producers. U.S. index futures were little changed, while Asian shares advanced. Daimler AG, Bayerische Motoren Werke AG and Fiat SpA retreated at least 2 percent as Goldman Sachs Group Inc. cut its growth forecast for the Chinese economy and Germany’s Ifo institute predicted the worst recession since World War II in Europe’s biggest economy. Royal Dutch Shell Plc, the region’s largest oil company, and BP Plc climbed more than 1 percent as crude prices rose for a second day. Europe’s Dow Jones Stoxx 600 Index slipped 0.6 percent to 204.16 at 11:44 a.m. in London. The measure has slumped 44 percent this year as policy makers and governments worldwide introduced measures to cushion economies from the worst financial crisis since the Great Depression. “The depths of this recession aren’t in the price yet,” said Philip Manduca, London-based head of investments at ECU Group Plc, where he manages more than $1 billion. “Data are worsening at an accelerating degree and that is concerning. That means everything is getting significantly worse,” he told Bloomberg Television. The Swiss central bank cut its interest rate to a four-year low of 0.5 percent and said further measures are possible as the economy faces a recession that may be the worst since 1982. Germany’s economy will shrink 2.2 percent next year and the contraction will continue into 2010, with gross domestic product declining 0.2 percent, the Munich-based Ifo institute said today. U.S. Futures Futures on the Standard & Poor’s 500 Index fell less than 0.1 percent, following a 1.2 percent advance in the benchmark measure for American equities yesterday. Figures from the Labor Department may show today 525,000 people filed initial claims for unemployment insurance last week compared with 509,000 the prior week, according to a Bloomberg survey of economists. U.S. employers have cut 1.9 million workers from payrolls so far this year, the government said last week. Stocks in Asia rose for the fifth day, the longest winning streak in seven months, as South Korea cut interest rates to a record low. The MSCI Asia Pacific Index added 1.2 percent as KB Financial Group Inc. surged 7.8 percent in Seoul. More than $31 trillion has been erased from the value of global equities and credit losses and writedowns at banks and insurers are approaching $1 trillion. Ruble Devaluation In Russia, the devaluation of the ruble gathered pace as the central bank loosened control of the currency for the fifth time in a month after reserves fell $161 billion defending the exchange rate. Investors have taken almost $200 billion out of the country, BNP Paribas SA data shows. Daimler, the world’s second-largest maker of luxury cars, lost 3.6 percent to 24.965 euros. BMW, the biggest, dropped 1.3 percent to 22.33 euros. Goldman lowered its forecast for the Chinese economy by 1.5 percentage points to 6 percent in 2009, citing weakness in exports and investment. “In China, the slowdown will be greater than during the Asia financial crisis or the 2001 dot-com bust,” Goldman wrote in an e-mailed report today. “The near-term growth outlook in China is particularly weak.” Senate Republicans voiced opposition to the $14 billion rescue for General Motors Corp. and Chrysler LLC. Democratic leaders and the Bush administration are trying to beat a deadline to save the millions of jobs dependent on the car industry before GM and Chrysler burn through their remaining cash. For GM, that could be in three weeks. ‘Underweight’ Fiat, Italy’s biggest carmaker, slid 4.3 percent to 5.525 euros as the stock was downgraded to “underweight” from “overweight” at Morgan Stanley. Shell added 1.4 percent to 1,779 pence. BP, Europe’s second- biggest oil producer, climbed 3 percent to 528 pence. Crude oil advanced after Saudi Arabia said it is producing near its OPEC target, a sign the world’s biggest exporter is complying with supply cuts agreed by the group in October. Ericsson, the world’s largest maker of wireless networks, slipped 2.9 percent to 63.3 kronor after Merrill Lynch & Co. lowered its recommendation on the company to “underperform” from “buy.” The shares have risen 25 percent in the past six weeks and are approaching Merrill’s price target of 67 kronor, Andrew Griffin, a London-based analyst, wrote in a report today. UPM-Kymmene Oyj retreated 5.6 percent to 9.85 euros. Europe’s second-biggest papermaker said it will miss its fourth- quarter earnings targets because of a higher-than-anticipated drop in deliveries. To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net.

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