BERLIN - GERMAN Chancellor Angela Merkel warned in an interview released on Saturday that 2009 could be 'a year of bad news' for the economy but that government action has stabilised the financial markets.

'We must expect that next will be a year of bad news, at least in the first months,' Dr Merkel was quoted as saying in an interview to be published in the Welt am Sonntag newspaper on Sunday.

BERLIN - THE US economy needs additional support measures of between US$300 billion (S$458 billion) and US$600 billion to help it withstand the financial crisis, US billionaire investor George Soros was quoted as saying by a German weekly.

Mr Soros, one of the world's first and best-known hedge fund managers, told Der Spiegel magazine the United States needed an infrastructure programme, as well as a large economic stimulus package to provide its cities and states with sufficient cash.

THE HAGUE - DUTCH electronics giant Philips will cut 'about five per cent' of its 32,000 strong workforce in the medical division worldwide, affecting 1,600 workers, a company spokesman told AFP on Saturday.

'In this sector, about five per cent of all workers will be laid off. There are a total of 32,000 employees in this division so that means 1,600 jobs will be lost,' said Arent Jan Hesselink.