Tag Archives: banks

Business/Economics, International, Technology

What Economic Recovery? Sharp projects record loss for 2012!

01 November 2012, yet another Japanese electronics maker announced they are losing money big time, and for the second year in a row.  Sharp predicts it will lose at least $5.6 billion USD by March 2013 (the end of the Japanese fiscal year)!

From April to September 2012 Sharp lost nearly $5 billion, 80% more than they originally predicted!  As other Japanese electronics makers, they blame crashing TV sales.

Sharp officials say they will now layoff 10,000 employees and sell assets.  They’ve also taken on a $4.6 billion bailout loan.

 

Business/Economics, U.S.

What Economic Recovery? Businesses closed because of hurricane Sandy, will not get insurance coverage!

31 October 2012, just because a business has interruption insurance doesn’t mean they’ll get paid: “There has to be direct physical damage to the building in order for business interruption insurance to come into play.”-Loretta Worters, Insurance Information Institute

Thousands of small businesses were forced to close shop because of hurricane Sandy, but they did not suffer physical damage. This means not only are they losing money from lack of sales, but the money they paid for interruption insurance was wasted.

Also, businesses closed due to power outages or mandatory evacuation orders are not covered under interruption insurance: “I figured there’s probably an out for the insurance company, but I was hoping we’d be paid since the city had ordered everything to shut down, including the subways.”-Robert Wyatt, Lightspeed Express, found out his insurance won’t payout

And don’t forget, for most businesses there’s no such thing as flood insurance, unless it’s through the federal National Flood Insurance Program.

What this means is that many northeastern businesses will not be able to recovery financially!

Business/Economics, International, Technology, U.S.

World War 3 & What Economic Recovery? Japan to suspend elections to avoid fiscal cliff? Part of IMF’s fiscal consolidation order? Growing regional disputes with China?

“We shouldn’t create at will a political vacuum that would cause policies to stall.”-Yoshihiko Noda, Prime Minister of Japan, 29 October 2012

The “political vacuum” the Prime Minister is talking about concerns his loss of political power: “Noda wants to delay the day of reckoning as long as possible. Who would call an election now knowing that over 100 parliament seats would be lost, putting the party on the brink of collapse?”-Harumi Arima, political analyst

Noda is using the now catastrophic Japanese economy as an excuse not to dissolve the Lower House of Parliament: “If the situation is left as it is, administrative services could stall, which would seriously affect people’s livelihoods and thwart efforts to revive the economy.”-Yoshihiko Noda, Prime Minister of Japan, 29 October 2012

Dissolving the Lower House is a necessary step in Japan, before elections can be held.

The above statements were made two days ago. Today, 31 October 2012, Noda confronted critics, saying he will decide when the time is right for elections, and the time will be right only when the economic situation is properly addressed: “I will make a decision on the dissolution after doing some necessary tasks and preparing responses to the economic situation.”-Yoshihiko Noda, Prime Minister of Japan, 31 October 2012

Just how bad is the economy in Japan?  For one, the Japanese government has more debt than the Greek government.

For two, Japanese companies are experiencing huge drops in sales, so much so that tens of thousands of Japanese have lost their jobs in the past year alone.

For three: “The situation is worse than we had expected earlier, and we have a severe outlook for the second half. Digital consumer businesses such as TV, cameras, Blu-ray disc players and PCs worsened faster than we had expected three months ago.”-Hideaki Kawai, CFO Panasonic

For four: “We don’t see when bad news will stop coming out.”-Kazuyuki Terao, Allianz Global Investors Japan Co.

Prime Minister Noda stated today, that before elections could be held he wanted policies passed that would issue debt covering bonds, drastically change the retirement program for Japanese, and other additional economic austerity measures by the end of November.  These are inline with what the International Monetary Fund ordered just days ago.

Noda also admitted that he wanted the right environment to correct the disparity in Lower House, meaning he wanted to make sure his political party got most of the seats!

Delaying elections is also about maintaining regional power, with the backing of the United States.

Two days ago Noda mentioned growing disputes between China, Russia and Korea, South: “Achieving relationships of trust with surrounding countries such as China, South Korea and Russia, with a comprehensive view, strengthens the foundations on which Japan and the whole region enjoy peace and prosperity. It is one of the grave responsibilities a country has to fulfill.”

Business/Economics, International, Technology

What Economic Recovery? Panasonic predicts more massive losses! Suspends dividend payments for first time! Chairman cuts his own pay by 40%!

31 October 2012, one of Japan’s electronics giants, Panasonic, announced massive losses by the end of their fiscal year.

Panasonic officials say they expect to have suffered a net loss of more than $9 billion USD by March 2013!   They already lost $8.6 billion from April to September 2012!

For the first time in 62 years it is suspending dividend payments to stockholders!  Company officials say they are now forced to “restructure unprofitable operations”.  That’s industry code for shut factories down and lay people off (they already laid off 39,000 people in 2011!).  But unlike greedy unAmerican Corporate America leaders, the boss of Panasonic said he was cutting his own pay by 40%!

Just like other Japanese electronics makers, Panasonic blames the huge losses on crashing TV and camera sales.  Panasonic lost $9.7 billion in 2011!

 

Business/Economics, International, U.S.

What Economic Recovery? Germany says economy worse than they thought! Greece tells IMF they can not make anymore compromises! IMF pushes for U.S. consolidation, code for even more drastic deleveraging! Oil prices to crash!

“We are talking about the things that still need to be solved and here it became clear that the global economy’s risks are very evident, as is clearly stated in the communiqué. The economic growth outlooks are not as good as we would hope.”-Angela Merkel, Chancellor of Germany

The German leader made the statement on 30 October 2012, after reading a report from the Organization for Economic Co-operation and Development, World Trade Organization, International Labour Organization, International Monetary Fund and the World Bank.

The IMF boss, Christine Lagarde, admitted that economic growth will be pathetic: “I would characterize the situation as that of a laborious recovery out of the financial crisis through some degree of stabilization by way of tepid growth.” 

The IMF also pushed developed economies to further consolidate their fiscal policies. This is another way of saying government deleveraging (typically in the form of austerity) should be increased.

(deleveraging began for individuals and small businesses with the 2008 Credit Crisis/Crunch. It’s one of the causes behind all the Sears & Kmart store closings in the U.S.)

The IMF is specifically targeting the United States, saying the U.S. needs a credible fiscal consolidation plan, implemented “at an appropriate pace” in order to stabilize a “fragile” world economy.

Just two days ago, the IMF, along with European lenders, told Greece that they could not provide anymore financing unless more drastic changes were made, such as drastic changes in Greece’s labor/wage laws.  The Greek coalition government is showing signs that it would rather default than make anymore compromises.

The paradox is that while world economic organizations want increased deleveraging of individuals, small businesses and governments, they also want employment to somehow increase and people to somehow spend more money buying stuff they don’t need (domestic consumption)!

And it’s not just developed countries being told to axe their government spending, even oil rich Arab countries are being told to do the same: “A rapid deterioration in the global economy could bring about developments similar to what the region experienced in 2009, including a sharp fall in oil prices and disruptions to capital flows.”-IMF

The IMF explained that as the world economy worsens, demand for oil is going to drop to such lows that the the six Gulf Cooperation Council economies of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman and Bahrain could experience an economic crash.

The IMF projects that the price of oil could drop by $30 USD per barrel in 2013, and continue dropping!  This might sound like good news, but it’s because people won’t have the money to buy it at any price!

 

Business/Economics, International, U.S.

What Economic Recovery? Too Big to Fail bank revises planned layoffs, upward by the thousands!

30 October 2012, Swiss banking giant, UBS, announced a major change in its plans to cut employees; they now want to layoff 10,000 workers worldwide!

Last year UBS announced they would layoff 3,000 employees, but because the too big to fail bank has been losing money from its investment operations, they’ve now upped it to 10,000.

UBS employees in Stamford, in the U.S. state of Connecticut, will make up the majority of those laid off.

Of course (and more proof that unAmerican Corporate America/Europe is behind the economic disaster) stock investors loved the announcement, and drove up UBS stock prices in European stock markets with frenzied buying (I’m sure the same thing would be happening on Wall Street if it wasn’t for the hurricane).

Business/Economics, International, U.S.

What Economic Recovery? Updated list as more Kmart and Sears closings announced! $45,000 in Jewelry stolen! Parts & repair centers to be closed! Canadians love Sears! Business is good for Kmart, in Australia!

30 October 2012, since my last posting (on 21 October 2012) about the ongoing Sears Holdings shut downs, there have been more store closings announced.

Also, Sears Holdings just announced they will be closing two parts and repair centers, both located in The Woodlands, Texas.  At least 117 Texans will lose their jobs by 23 January 2013.

In Washington, on 23 October 2012 Bellingham Sears employees were notified that they will lose their jobs in January, however, the store management has known for months about the closing: “We’ve known since March of this year.”-Noelle Jorgensen, store manager

The latest announcements will mean 654 jobs will be added to the thousands already lost due to the Sears/Kmart closings.

In Canada, the newspaper, Calgary Herald, announced the winner of their 2012/13 Readers’ Choice Awards: Department Store, Appliance Store, Carpet Cleaners and Floor Coverings contest.  According to the newspaper Canadians picked Sears!

This despite the fact that Sears stores are being closed in Canada as well.  On 07 October one of the largest Sears stores in British Columbia was closed. 300 people lost their jobs (at it’s height of operation it once employed 800 people)!

Also in Canada, Sears Holdings announced it will reduce its 95.5% stake in Sears Canada, by selling its stocks to common stockholders.  Sears Holdings wants to reduce its stake in Sears Canada to 51%.

Kmart has reported a 3.1% increase in sales, in Australia and New Zealand: “This is the 11th period in succession of solid comparable growth in transactions and units for Kmart as customers respond positively to its market leading pricing strategy and improved merchandise offer.”-Richard Goyder, Wesfarmers

Don’t you Yankees get your hopes up, Aussie and Kiwi Kmarts are not owned by Sears Holdings.  They’re owned by an Australian company called Wesfarmers.

Here’s an updated list of Sears/Kmart closings:

Alabama: Gadsden Kmart, Mobile Sears Grand/Essentials, Auburn Kmart.

California:   El Monte Sears Grand/Essentials, two San Diego Sears Grand/Essentials, Pleasant Hill Kmart.

Colorado:  Broomfield Kmart, Glenwood Springs Kmart, Lone Tree Sears Great Indoors, Longmont Sears, Pueblos’ South Side Kmart.

Georgia: Macon Sears, Buford Kmart, Douglasville Kmart, Atlanta Kmart, Columbus Kmart, Jonesboro Kmart, Cartersville Kmart.

Florida: Fernandina Beach Kmart, Callaway Kmart, Orange City Kmart,  Deland Sears Grand/Essentials, Stuart Sears Grand/Essentials, West Palm Beach Sears Grand/Essentials, Port St. Lucie Sears Grand/Essentials, Crystal River Sears, New Smyrna Beach Kmart, St. Augustine Kmart, Pompano Beach Kmart,  Pensacola Kmart on Airport Boulevard closed in 2011,  Jacksonville Kmart on 5751 Beach Boulevard and recently revealed second Kmart in Jacksonville on 4645 Blanding Boulevard (83 jobs lost), and the Ocoee Sears (102 jobs lost), Pensacola Kmart to be closed by 03 February 2013 (69 jobs lost).

Idaho: Lewiston Sears.

sears chubbuck
Floundering Sears at the GGP owned
Pine Ridge Mall in Chubbuck, Idaho.
Kmart Pocatello
Floundering Big Kmart in Pocatello, Idaho.
Are they next to go in Idaho?

Indiana:  Anderson Sears Full Line, Saint John Kmart, Indianapolis Kmart.

Illinois:  Melrose Park Sears parts and repair center, Fairview Heights Kmart, Freeport Kmart, Pontiac Kmart.

Iowa:  Cedar Rapids Kmart, Davenport Kmart, Burlington Kmart.

Kansas: Lawrence Sears Full Line.

Kentucky: Middlesboro Sears Hard lines, Winchester Kmart, Hazard Kmart.

Maine: Lewiston Sears.

Maryland: Ellicott Sears Grand/Essentials.

Michigan: Brighton Sears Grand/Essentials,  Harper Woods Sears Full line, Monroe Sears Full line, Adrian Sears Full line, Washington Township Kmart, Chesterfield Kmart, Woodhaven Kmart.

Minnesota: Willmar Kmart, Duluth Kmart, New Hope Kmart, White Bear Lake Kmart.

Mississippi: Jackson Sears Full line, McComb Sears Full line, Columbus Sears Full line.

Missouri: Lee’s Summit Sears Grand/Essentials, Saint Louis Sears Full line.

Montana: Missoula Kmart.

New Hampshire: Nashau Sears Grand/Essentials, Keene Sears Grand/Essentials.

North Carolina: High Point Sears Full line, Moorehead Sears Full line, Rocky Mount Sears Full line, Statesville Sears Full line.

New Jersey:  Lawnside Kmart.

Ohio: Chagrin Falls Kmart, Springfield Kmart, two Toledo Kmarts, Medina Kmart, Columbus Kmart and recently revealed Zanesville Sears (67 jobs lost). Also, Van Wert Sears franchise bought out by Kirk Berryman, owner of Computer & Networking Technologies (CNT), who plans on moving the store to a new location.

Oregon: Roseburg Sears Full line.

Pennsylvania: Upper Darby Sears Full line, Pottstown Sears Full line, Pittsburgh Kmart, Wilkins Sears.

South Carolina: Sumter Sears and recently revealed Orangeburg Sears (approximately 50 jobs lost).

Tennessee: Antioch Sears Full line, Cleveland Sears Full line, Oak Ridge Sears Full line, Hendersonville Kmart, Morristown Sears Full line.

Texas: Two recently revealed Sears parts and repair centers closing in The Woodlands north of Houston (117 jobs lost).  Update; I forgot to mention the ‘rebuild’ center in Garland northeast of Dallas (58 jobs lost).

Virginia: Norfolk Sears Full line,  Midlothian Kmart, Richmond Kmart and recently revealed Lynchburg Sears (84 jobs lost).

Washington: Walla Walla Sears Full line, Lacey Kmart, Kelso Sears, and recently revealed Lakewood Kmart (59 jobs lost) and Bellingham Sears (92 jobs lost).

Wisconsin: West Baraboo Sears Grand/Essentials, Rice Lake Kmart.

On top of that, Sears Holdings sold stores to General Growth Properties, of which it has been reported that those stores will be closed.

It was recently announced that the Provo, Utah, store will continue operating as a Sears.  Sears Holdings announced that GGP made a lease deal they couldn’t refuse, so they will continue running the GGP owned store.

Here’s the list of 11 Sears stores now owned by GGP:

Iowa: Coral Ridge Mall, and Mall of the Bluffs

Texas: The Woodlands Mall

Florida: West Oaks Mall

Utah: Fashion Place, and Provo Towne Centre (note the evil British empire way of spelling town & center)

Oklahoma: Quail Springs Mall

Hawaii: Ala Moana Center

Washington: Bellis Fair Mall

Minnesota: Apache Mall

Illinois: Market Place Shopping Center

In a side note, the Sears in Yuma, Arizona, was robbed of $45,000 USD of jewelry on 26 October 2012.  According to Yuma Police, the early morning burglars also caused approximately $70,000 in damage breaking into the Sears.

Also on 26 October, a Detroit, Michigan, Kmart store reported thousands of dollars worth of jewelry as stolen.  Police say it was a theft, not a burglary (in other words no body broke into the store).

In Greeley, Colorado, a man stole a car and smashed it into a Sears, then stole automotive tools. It was one part of the man’s larger smash and grab burglary spree.

Sears holdings is also suing a former executive for $700,000.  They claim she breached her contract.

International

What Economic Recovery? Number of people qualifying for welfare sets new record, three months in a row!

25 October 2012, more proof that there is no economic recovery is that for three months in a row the number of people in Japan, who qualify for welfare help, set records three months in a row.

Altogether, for the months of May, June and July the number of individuals qualifying for welfare totaled 2.12 million by the end of July, and the number of entire households totaled 1.5 million.

From June to July there was a jump of 9,000 individuals qualifying for welfare.

The Health, Labor and Welfare Ministry blames continued job losses caused by the corporations.  Households with working age adults are the fastest growing segment of welfare recipients.

However, households with retired people make up 44% of the new welfare recipients.

Some members of the Japanese parliament are proposing to cut back on welfare funding.

Business/Economics, International, U.S.

Global Economic war & World War 3: Iran orders the United States to back off! Will stop all oil sales to the World!

“If you continue to add to the sanctions we will cut our oil exports to the world…..The dearth of Iranian oil on the market will increase the price drastically.”-Rostam Qasemi, Iran’s Minister of Petroleum

On 23 October 2012, Iranian officials quietly announced that Iran is prepared to stop all its oil sales to the world, if the United States and Europe continue economic sanctions.

On 15 October, the European Union voted for more sanctions against Iran.

Iranian officials say they are ready for “Plan B”, which means halting all petroleum sales and running their country without oil revenues.  This is possible because Iran’s non-oil exports are now high enough to offset the huge loss of oil money.

Even Iran’s domestic industries are becoming more self sufficient.  Example: According to the World Steel Association, Iran’s steel industry is now the 16th largest in the world: “Despite the intensified sanctions during the last two years, the capacity of Iran’s steel production has increased 5 million tons and we will be completely self-sufficient in the steel industry in the next three years.”-Hamidreza Taherizadeh, Vice-President of Iran’s Steel Association

The announcement was made at a OPEC meeting in Dubai.

Business/Economics, International, U.S.

What Economic Recovery? Foreign investment into the United States drops 39%! China now number one, thanks in part to U.S. investors!

24 October 2012, so much for the increased U.S. investment U.S. President Barack Obama was calling for.  According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investing (FDI) into the U.S. has fallen 39.2% in the first six months of 2012!

The huge drop in FDI for the U.S. represents a shift, to developing countries and to China.

China also saw a drop in FDI, but by only 3%.  China is now the number one destination for the money from international investors!

Ironically (since according to Obama, U.S. investors need to spend their money at home in order to save the U.S. economy) $59.1 billion USD of the FDI into communist China came from U. S. capitalists!

According to Global Investment Trends Monitor, U.S. investors spent $57.4 billion at home, nearly two billion less than what they spent on investing into China.  (Mitt Romney anyone?)

The UNCTAD also shows that, for the first time, half of all global FDI went to developing countries.  However, some UNCTAD officials think the U.S. will see a slight increase in FDI for the second half of the Gregorian calendar year.