PARIS (AFP) - A stark warning by state media Wednesday of possible mass unrest in China signalled deepening fears over the global recession, as Europe grappled with more job losses and an energy cutoff during a winter freeze. The economy of Asian powerhouse China might become so bad in the next few months that the fabric of the world's most populous nation could start unraveling, the authoritative weekly Outlook, published by the Xinhua news agency, warned in its latest edition. The magazine said that "enterprise closedowns, layoffs and labour disputes have significantly increased" and with workers' livelihoods threatened, "their pent-up discontent could easily burst out... and spark mass conflicts." European workers are also feeling the brunt of the global recession with official data showing that the number of people out of work in Germany rose by 114,000 in December to 3.1 million. On Britain's high street, iconic retailer Marks & Spencer said it would slash up to 1,230 jobs and close 27 stores as consumer spending, the driver of the British economy, shrinks. Analysts expect the Bank of England to intervene in this recessionary climate Thursday and cut its key interest rate to the lowest ever level. The British finance minister, Alistair Darling, said in an interview that he could not predict an economic turnaround any time soon as recession in Britain was expected to officially confirmed by data later this month. "In the current climate, no responsible finance minister could say that's the job done, far from it. We are far from through this," Darling told the Financial Times. The US Federal Reserve Tuesday indicated that the world's biggest economy would likely be stuck in recession well into 2009 with a "moderate recovery" in 2010, according to minutes from last month's policy meeting. In the world's biggest mobile phone market with currently 634 million subscribers, the Chinese government issued long-awaited third-generation mobile phone licences which are expected to pour billions of dollars into new networks for video- and Internet-enabled handsets. Analysts said although it may be years before 3G services become popular in China, issuing the licences will immediately benefit global equipment makers such as Siemens, Ericsson and Nokia, as well as local rivals. With economic growth forecast at 7.5 percent this year, a level not seen since 1990, Chinese communist leaders likely appreciated the optimistic note from the United States, which is marking 30 years of diplomatic ties with Beijing. "There are many different possibilities in the US-China relationship, and I'm sure in the next 30 years, it will only get better," US Deputy Secretary of State John Negroponte told reporters on his high-profile visit to the Chinese capital.