The Asian slowdown

Slowdown hits jobs at S. Korean brokerages

UPI,

5 August, 2012

The global economic slowdown and other factors have hit the profits of South Korean brokerages, forcing them to reduce their workforce, sources told Yonhap.

Other factors, including the European debt crisis and a slump in the domestic equity market, also have led to reduced trading activities at these brokerages, the South Korean news agency reported Monday.

The report, citing data from the Financial Supervisory Service and the Korea Financial Investment Association, said there was a total of 42,388 employees in 63 brokerage firms at March end, down 0.7 percent from the previous quarter.

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Sony's net loss grows to ¥25 billion

Japan Times,

3 August, 2012

Sony Corp. said Thursday its group net loss for the April to June period widened to ¥24.64 billion from ¥15.50 billion a year earlier due to the strong yen and increased costs for restructuring.

The electronics giant said group operating profit plunged 77.2 percent to ¥6.28 billion, but consolidated sales rose 1.4 percent to ¥1.52 trillion.

For the year to March 31, Sony revised its earnings projection downward as it cut the outlook for its mainstay products amid the economic slowdown, it said.

Sony said it now expects to book a group net profit of ¥20 billion and an operating profit of ¥130 billion on sales of ¥6.8 trillion, versus an earlier forecast for group net profit of ¥30 billion and operating profit of ¥180 billion on sales of ¥7.4 trillion.

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Sharp Shares Near 40-Year Low as Woes Pile Up

Fox Business,

2 August, 2012

The gloom gathering around Japan's struggling electronics industry darkened Friday as investors spooked by Sharp Corp.'s (6753.TO) steep losses and perceived strategy fumbles sent the shares skidding to lows not seen for nearly 40 years, wiping nearly a third off the company's value.

Sharp's 30% slide to its lowest level since November 1974 was the most eye-catching symbol of the trouble with Japanese electronics players, coming the day after the company warned it would slip to multi-billion losses once again this fiscal year.

But companies across the sector lost value as shareholders reacted to the seemingly intractable problems that Japanese makers of products likes TV sets, computers and portable electronic gadgets face, cornered between the relentlessly strong yen and buoyant overseas competition from the likes of Apple Inc. (AAPL) and Samsung Electronics Co. (005930.SE).

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Sony on Watch for Debt Downgrade

24/7 Wall Street.

6 August, 2012

The senior unsecured debt and short-term ratings of Sony Corp. (NYSE: SNE) have been placed on review for a possible downgrade by Moody’s Investors Service this morning. The current ratings are Baa1 and Prime-2.

The ratings agency noted:

The rating actions reflect Moody’s concern that weak consumer sentiment, especially in Europe and China, and a strong yen versus the euro may hinder the timely recovery of Sony’s earnings and leverage.

In addition, the company’s digital audio visual (AV) and mobile-phone businesses continue to be plagued by structural challenges, such as the commoditization and maturity of major products, rapid technological changes, and intense global competition. Sony has not been able to deal with these issues effectively.

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Israel backtracks on tax hike to secure austerity package approval

News Daily,

6 August, 2012

Israel's parliament gave final approval to a package of unpopular tax hikes aimed at reining in the budget deficit on Monday after Prime Minister Benjamin Netanyahu backtracked on a planned income tax hike for middle-income earners.

To ensure support for the austerity package, Netanyahu on Monday scaled back a planned 1 percentage point income tax increase on those earning more than the average salary of 8,881 shekels ($2,231) a month from 2013, saying the increase would now not apply to those earning less than 14,000 shekels a month.

The tax hike had been widely criticized in the Israeli media for unduly harming the middle class

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