Interest rate cuts to spearhead crisis fightback

By Kate Kelland and Kitiphong Thaichareon

LONDON/BANGKOK (Reuters) - Thailand led a new round of global interest rates cuts on Wednesday, with countries from Europe to New Zealand expected to follow in the next few days to fight an unrelenting financial crisis.

In London, the British government said it would help families and small businesses survive an impending downturn. But it made no mention of measures to force banks to lend more as it laid out a policy agenda for a difficult year ahead.

U.S. stock futures were indicating losses at the market open after data showed U.S. private employers shed the most jobs in seven years in November. ADP Employer Services said a greater-than-expected 250,000 jobs were lost in the month.

The U.S. Labor Department will release the government's broader November jobs report on Friday.

U.S. Treasury Secretary Henry Paulson was reported to be considering if he should ask lawmakers in Washington for the second half of a $700 billion bank rescue package after the United States was officially declared to be in recession.

Pressure for big rate cuts in Europe and Britain grew with surveys showing the euro zone and UK service sectors fell deeper into recession in November than first thought. The U.S. Institute of Supply Managers is expected to report on the American service sector later Wednesday.

While Asian stocks rebounded from recent sell-offs, European shares weakened following the services report.

The Bank of Thailand slashed its main interest rate for the first time in 16 months to help an economy hit both by the global crisis and political unrest, cutting 100 basis points to 2.75 percent. Australia cut rates on Tuesday and the euro zone, Britain, Sweden and New Zealand all make decisions on Thursday.