President-elect Barack Obama stepped into his new role on Wednesday facing calls for urgent action to stem the global financial crisis as he was hit with gloomy news about U.S. jobs.

A day after his historic election as America's first black president, Obama heard a chorus of congratulations from around the world but also warnings about the creeping global recession that will crowd the top of his agenda along with the wars in Iraq and Afghanistan.

World leaders expressed hope Obama could guide the international community while investors eagerly awaited an announcement on whom he would select as Treasury Secretary to oversee the $700 billion program to buy distressed assets and recapitalize wobbly financial institutions.

"The need for a seamless transition is greater than it has been in our adult political lifetime," said William Galston, a former domestic policy adviser to President Bill Clinton who is now a professor at the University of Maryland.

"With two wars abroad and an international financial crisis going on, there cannot be a period in which the new administration is just getting up to speed," Galston said.

Obama, who takes office on January 20, has proposed a new economic stimulus package to help revive the economy, which is still staggering from a mortgage crisis that left financial institutions overleveraged, undermined confidence, froze credit markets and transformed Wall Street.

On the morning after the election, ADP Employer Services said U.S. private employers cut a larger-than-expected 157,000 jobs in October, suggesting the government's more comprehensive nonfarm payrolls report on Friday will show a loss of 200,000 jobs, at least one expert said.

There was also stress overseas.

Germany's cabinet on Wednesday agreed on a 50 billion euro ($64.22 billion) stimulus package for Europe's largest economy that includes tax breaks and spending on infrastructure. It comes in addition to a 500 billion euro bank rescue package to help restore confidence in the financial system introduced last month.

Italy will approve a plan to support banks next week, Prime Minister Silvio Berlusconi said, amid signals the European Commission has expressed a willingness for flexibility to increase fiscal spending.

"We need to change the current crisis into a new opportunity. We need a new deal for a new world," said European Commission President Jose Manuel Barroso. "I sincerely hope that with the leadership of President Obama, the United States of America will join forces with Europe to drive this new deal."

EUROPEAN RATE CUTS

Gloomy data from Britain and the 15-nation euro zone added to expectations of hefty interest rate cuts on Thursday.