New recession warnings hit leading economies
AFP
PARIS (AFP) - - The OECD warned Tuesday that the US faced more economic pain before any recovery late next year as data showed Japan and Britain slipping even deeper into recession than previously feared.
The Organisation for Economic Cooperation and Development, an influential government-funded economics institute based in Paris, was supportive of stimulus efforts for the US economy and praised cuts in interest rates.
But it said the world's biggest economy "is nonetheless likely to get weaker before its gets better," forecasting a contraction of 0.9 percent next year.
In Japan, Sony, a bellwether of corporate Japan, said it would cut investment in its electronics business by 30 percent, axe 10 percent of its manufacturing sites and exit unprofitable businesses to cope with the downturn.
The announcement came just hours after Tokyo said its economy shrank 0.5 percent in the three months to September -- 1.8 percent on an annualised basis -- even worse than initially estimated.
"The data suggests that the economy is contracting faster than previously thought, and the depth of the recession will be more severe," said Glenn Maguire, chief Asia economist at Societe Generale in Hong Kong.
In Britain meanwhile, manufacturing output sank 1.4 percent in October from September, the eighth monthly drop in a row, and was down 4.9 percent on a 12-month basis, the Office for National Statistics (ONS) said in a statement.
The monthly fall was the largest decline since March 2005 and means that the country has now faced the longest consecutive contraction in manufacturing output since 1980.
Global stocks were mixed after their giant rally on Monday on hopes that an economic stimulus plan promised by US president-elect Barack Obama would solve some of the world's economic woes.
In Asia, Tokyo ended 0.8 percent higher but Hong Kong fell 2.05 percent, Sydney lost 0.8 percent and Shanghai fell 2.54 percent.
In Europe, the London FTSE 100 added 1.16 percent, the Paris CAC 40 gained 1.60 percent and Frankfort rose 0.64 percent in late morning trading.
US stock futures, an indication of how Wall Street will open later in the day, stepped higher Tuesday, following two sessions of strong gains.
In focus on the economic front Tuesday will be the latest figures on October pending home sales, which are due after the US market opens.
Investors are also focused on a rescue plan for US automakers.
Democrats in Congress have proposed a 15-billion-dollar bailout package for the troubled industry after granting concessions to the White House, which is yet to sign off on the compromise amid tough negotiations.
The proposal offers less than half of the 34 billion dollars General Motors, Chrysler and Ford said they would need to stave off a "catastrophic collapse" of the nation's automotive industry.
The low-cost, government-backed loans -- which would give the government an ownership stake in the firms -- are intended to sustain the troubled car giants through March, allowing president-elect Barack Obama time to address the problem after he takes office on January 20.
In another industry struggling with the economic crisis, airlines were forecast Tuesday to post losses of 2.5 billion dollars (1.9 billion euros) in 2009 due to the economic crisis.
The forecast by the International Air Transport Association was sharply lower from the 4.1 billion dollars projected earlier in October due to measures taken by American carriers to deal with the economic crisis, however.
"The outlook is bleak," said Giovanni Bisignani, the association's director general and chief executive.
"The chronic industry crisis will continue into 2009 with 2.5 billion dollars in losses. We face the worst revenue environment in 50 years."
- wong chee tat :)
Tuesday, December 9, 2008
Sony says to cut 8,000 jobs, shut plants
Sony says to cut 8,000 jobs, shut plants
AFP
AFP - Tuesday, December 9
TOKYO (AFP) - - Japan's Sony Corp. said Tuesday that it was cutting 8,000 jobs worldwide and shutting some plants as part of an overhaul of its business to cope with the global economic downturn.
The electronics giant said it would axe about 10 percent of its manufacturing sites, cut investment in its electronics business by about 30 percent and downsize or withdraw from unprofitable areas.
Sony, seen as a bellwether of corporate Japan, said it would lay off about five percent of its 160,000 workers in its global electronics business. It will also reduce the number of seasonal and temporary workers.
"These initiatives are in response to the sudden and rapid changes in the global economic environment," it said in a statement.
Japan's electronics giants are facing tougher times after enjoying several years of strong profits thanks to brisk sales of flat televisions, digital cameras and mobile telephones.
The company will postpone a planned expansion of a plant in Slovakia that assembles liquid crystal display televisions for the European market.
Sony, which makes Bravia flat televisions, Cyber-shot digicams and PlayStation 3 video game consoles, will also end production at two overseas plants, including one in France, that make tape and other recording media.
It will also realign its network of plants and shift manufacturing to low-cost countries, while raising some product prices to mitigate the impact of the stronger yen.
The group said the measures should enable it to cut costs by more than 100 billion yen (1.1 billion dollars) a year by March 2010.
"In addition to these measures, Sony will continue to implement measures as required to help assure both short and longer-term profitability and growth," the statement said.
Sony said in October its operating profit plunged 90 percent in the second quarter of the financial year, hit by a surging yen, a weak global economy and intense price competition.
The electronics icon has endured a difficult spell in the face of tough competition from rival products such as Apple's iPod and Nintendo's Wii.
Last year it enjoyed a strong recovery under its first foreign boss, Howard Stringer, a Welsh-born US citizen. Under his watch, the group has shed non-core assets and axed thousands of jobs.
- wong chee tat :)
AFP
AFP - Tuesday, December 9
TOKYO (AFP) - - Japan's Sony Corp. said Tuesday that it was cutting 8,000 jobs worldwide and shutting some plants as part of an overhaul of its business to cope with the global economic downturn.
The electronics giant said it would axe about 10 percent of its manufacturing sites, cut investment in its electronics business by about 30 percent and downsize or withdraw from unprofitable areas.
Sony, seen as a bellwether of corporate Japan, said it would lay off about five percent of its 160,000 workers in its global electronics business. It will also reduce the number of seasonal and temporary workers.
"These initiatives are in response to the sudden and rapid changes in the global economic environment," it said in a statement.
Japan's electronics giants are facing tougher times after enjoying several years of strong profits thanks to brisk sales of flat televisions, digital cameras and mobile telephones.
The company will postpone a planned expansion of a plant in Slovakia that assembles liquid crystal display televisions for the European market.
Sony, which makes Bravia flat televisions, Cyber-shot digicams and PlayStation 3 video game consoles, will also end production at two overseas plants, including one in France, that make tape and other recording media.
It will also realign its network of plants and shift manufacturing to low-cost countries, while raising some product prices to mitigate the impact of the stronger yen.
The group said the measures should enable it to cut costs by more than 100 billion yen (1.1 billion dollars) a year by March 2010.
"In addition to these measures, Sony will continue to implement measures as required to help assure both short and longer-term profitability and growth," the statement said.
Sony said in October its operating profit plunged 90 percent in the second quarter of the financial year, hit by a surging yen, a weak global economy and intense price competition.
The electronics icon has endured a difficult spell in the face of tough competition from rival products such as Apple's iPod and Nintendo's Wii.
Last year it enjoyed a strong recovery under its first foreign boss, Howard Stringer, a Welsh-born US citizen. Under his watch, the group has shed non-core assets and axed thousands of jobs.
- wong chee tat :)
S'poreans less confident of getting by without main source of income
S'poreans less confident of getting by without main source of income
By Dominique Loh, Channel NewsAsia Posted: 09 December 2008 1756 hrs
SINGAPORE: Singaporeans these days are less confident of surviving without their main source of income, according to a recent survey conducted by American International Assurance (AIA) Company.
The AIA survey showed that only 19 per cent of interviewees said they could get by for more than two years without a primary source of income – down from 27 per cent a year before.
The survey was conducted between June and July this year, so the results and findings did not take into account the recent episode of financial products linked to failed US investment bank Lehman Brothers.
It also did not factor in the global financial developments in the past few months.
The survey suggested that Singaporeans are now more aware that they cannot cope without an income. Due to inflation, a person's savings for future plans may only last for less than a year.
One Singaporean, who was asked if he has saved enough to get by without an income, said: "I wouldn't know if I have prepared enough as I go on. I don't know how long I'll live."
"Even if I get a big pay check, I don't go out and spend. I'm like a squirrel – I like to save my money, watch the number grow and not spend it," another added.
"I've taken away my cable TV, and I've started shifting to NTUC for grocery purchases. I'm going to sell my car. It's going to be tough times," another responded.
More than 1,200 people over 18 years old were surveyed.
-http://www.channelnewsasia.com/stories/singaporelocalnews/view/395161/1/.html
- wong chee tat :)
By Dominique Loh, Channel NewsAsia Posted: 09 December 2008 1756 hrs
SINGAPORE: Singaporeans these days are less confident of surviving without their main source of income, according to a recent survey conducted by American International Assurance (AIA) Company.
The AIA survey showed that only 19 per cent of interviewees said they could get by for more than two years without a primary source of income – down from 27 per cent a year before.
The survey was conducted between June and July this year, so the results and findings did not take into account the recent episode of financial products linked to failed US investment bank Lehman Brothers.
It also did not factor in the global financial developments in the past few months.
The survey suggested that Singaporeans are now more aware that they cannot cope without an income. Due to inflation, a person's savings for future plans may only last for less than a year.
One Singaporean, who was asked if he has saved enough to get by without an income, said: "I wouldn't know if I have prepared enough as I go on. I don't know how long I'll live."
"Even if I get a big pay check, I don't go out and spend. I'm like a squirrel – I like to save my money, watch the number grow and not spend it," another added.
"I've taken away my cable TV, and I've started shifting to NTUC for grocery purchases. I'm going to sell my car. It's going to be tough times," another responded.
More than 1,200 people over 18 years old were surveyed.
-http://www.channelnewsasia.com/stories/singaporelocalnews/view/395161/1/.html
- wong chee tat :)
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