Market Report - Sony China Shock

STORY:
Sony announced it will cut almost three billion dollars in costs by 2010 and consolidate two LCD TV plants in Japan into one, that move alone shedding 1,000 contract staff.

The electronics maker stunned investors by posting of a three billion dollar operating loss, its biggest ever, due to what Sony's chief executive Howard Stringer called the depression.

[Howard Stringer, Sony Chief Executive]:
"We're in the worst economic depression in my life time; economic recession, we're not supposed to call it a depression yes, but it feels depressing, and that's that's my primary responsibility and whereas we are anticipating a high profit in October, but we've obviously lost a lot. We have to move in a hurry and that's our responsibility and my trame."

Last month Sony laid out restructuring plans which included curbing investment, closing plants and cutting 16,000 jobs - this figure is now expected to rise as Sony makes further savings.

Trade within East Asia has collapsed as global demand for goods such as cars and electronics shrivels, prompting leading manufacturers to slash production at an unprecedented rate and lay off workers.

Carmaker Hyundai says its quarterly earnings fell 28 percent and LG Electronics lost half a billion dollars due to big shortfalls at its flat-screens and weak mobile phone sales.

In another sign of the crunch in the tech sector, Intel Corp is closing plants in Malaysia and the Philippines, along with its remaining factory in Silicon Valley, cutting around 6,000 jobs.

Unsurprisingly, Japanese exports plunged a record 35 percent in December year on year battered not only by falling demand but also a soaring yen which rose to a 13 and a half year high against the dollar.

In China annual economic growth slowed to a seven-year low of nine percent, ending a five-year-streak of double-digit growth.

And neighboring South Korea is heading for its first recession since the regional financial crisis a decade ago after its economy contracted sharply last quarter.

But despite the dismal data, Asian stocks rose as investors snapped up beaten down bank shares and pinned their hopes on policy action to support growth.

Category:

News & Politics

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[randomvideos157]

Intel = Made in China

[randomvideos157]

Sony = Made in China

[MrRmclee]

i hate made in china its not durable

[karna4321]

@cyepadaek : seems u r chinese.....improve your English before you kill Indians!!!!

[cyepadaek]

After the Red china got your technology. then they will fuck you out . you will only come back home or and commited suiced .China kill you in any ways in china or out side china .Next will b die in India too.