Japan’s economy slid into a recession for the first time since 2001, the government said, as companies sharply cut back on spending in the third quarter amid the unfolding global financial crisis. Government officials and economists warned that the world’s second-largest economy could contract further in coming months.
Japan’s economy shrank at an annual pace of 0.4% in the July-September period after a declining an annualised 3.7% in the second quarter. That means Japan, along with the 15-nation euro-zone, is now technically in a recession, defined as two straight quarters of contraction.
“What we’re starting to see is the extent of deterioration in external demand start to weigh more heavily on the Japanese economy,” said Glen Maguire, chief Asia economist at Societe Generale. “And I think looking forward, there’s every indication that dynamic is going to continue.”
The result was worse than expected. Economists surveyed by a news agency had predicted gross domestic product would gain an annualised 0.1%. Japan’s economy minister Kaoru Yosano said following the data’s release that “the economy is in a recessionary phase.”
But the worst may be yet to come, especially with dramatic declines in demand from consumers overseas for Japan’s autos and electronics gadgets. Hurt also by a strengthening yen, a growing number of exporters big and small are slashing their profit, sales and spending projections for the full fiscal year through March.
Tuesday, November 18, 2008
Citigroup to fire 52,000 jobs globally
Citigroup Inc revealed plans to cut 52,000 jobs by early next year in a dramatic move to restore the No. 2 U.S. bank to health as it combats mounting debt losses and sagging economies worldwide.
The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's workforce, and are in addition to 23,000 jobs eliminated between January and September.
Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.
The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.
Pandit became Citigroup's chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The New York-based bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.
"As the economy continues to weaken they will have greater credit losses," said Michael Holland, founder of money manager Holland & Co in New York. "Cuts will lessen the losses, but they in no way guarantee profitability."
Pandit told employees in a memo that Citigroup has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.
Citigroup's latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp IBM announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.
The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. People at the bank said the cuts should be made by the first couple of months of 2009.
The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup's workforce, and are in addition to 23,000 jobs eliminated between January and September.
Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.
The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.
Pandit became Citigroup's chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The New York-based bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.
"As the economy continues to weaken they will have greater credit losses," said Michael Holland, founder of money manager Holland & Co in New York. "Cuts will lessen the losses, but they in no way guarantee profitability."
Pandit told employees in a memo that Citigroup has spent the last year "getting fit," and projects a "difficult" 2009 for clients and customers.
Citigroup's latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp IBM announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.
The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. People at the bank said the cuts should be made by the first couple of months of 2009.
No more firing, or hiring, at Kingfisher Airlines
Kingfisher Airlines said while it would not lay off employees, it would also not hire new people as long as the current downturn continued.
'There is no question of layoffs. The prime minister has given us the assurance that the government would do whatever it takes to address the problems of the aviation sector,' Kingfisher chairman Vijay Mallya said in an address at the World Economic Forum's India Economic Summit.
Prime Minister Manmohan Singh in his interaction with industry leaders Nov 3 asked them to refrain from large-scale layoffs, and advised them to bear in mind their social obligations.
Soon after, he also intervened to ensure state-run oil firms gave more time to domestic carriers to settle their fuel dues.
But Mallya said the aviation industry was being 'overtaxed'.
'The basic airfares are lower than fuel surcharge for many Indian destinations. Taxes should immediately be rationalised to make flying affordable,' he said.
Mallya, who is also member of parliament, earlier indicated that if the slump in the market continues, the industry would witness more layoffs.
Jet Airways last month sacked 1,900 employees only to reinstate them a day later, reportedly on government pressure. Carriers including Kingfisher Airlines have over the past month retrenched some staff.
Kingfisher has now sought permission from the government to sell a part of its equity to international carriers, saying a change of policy on foreign investment would help the industry that was facing turbulent weather.
'There is no question of layoffs. The prime minister has given us the assurance that the government would do whatever it takes to address the problems of the aviation sector,' Kingfisher chairman Vijay Mallya said in an address at the World Economic Forum's India Economic Summit.
Prime Minister Manmohan Singh in his interaction with industry leaders Nov 3 asked them to refrain from large-scale layoffs, and advised them to bear in mind their social obligations.
Soon after, he also intervened to ensure state-run oil firms gave more time to domestic carriers to settle their fuel dues.
But Mallya said the aviation industry was being 'overtaxed'.
'The basic airfares are lower than fuel surcharge for many Indian destinations. Taxes should immediately be rationalised to make flying affordable,' he said.
Mallya, who is also member of parliament, earlier indicated that if the slump in the market continues, the industry would witness more layoffs.
Jet Airways last month sacked 1,900 employees only to reinstate them a day later, reportedly on government pressure. Carriers including Kingfisher Airlines have over the past month retrenched some staff.
Kingfisher has now sought permission from the government to sell a part of its equity to international carriers, saying a change of policy on foreign investment would help the industry that was facing turbulent weather.
Monday, November 17, 2008
China to land moon-buggy by 2012
China aims to put an unmanned buggy on the moon by 2012, local media reported, laying the ground for its greater ambitions of putting a man on the moon.
China became the third country to put a man in space with its own rocket, after the former Soviet Union and the United States. It sent two more astronauts on a five-day flight on its Shenzhou VI craft in October 2005.
China launched its third manned space mission in September, with live-to-air footage of its first space-walk captivating the nation.
Its first lunar probe, the Chang'e-1 satellite, named after a lonely goddess who lives with a rabbit on the moon and pines for her husband, finished its mission last month after orbiting the moon thousands of times.
"China will send a moon-lander and moon-buggy around 2012," the Beijing News said, citing state television.
Before the moon-lander, China will send Chang'e-2 satellite to fulfil another circumlunar mission, CCTV added.
China said its lunar mission would include three steps of "orbiting, landing and returning", but has not disclosed schedule of any manned moon mission so far.
China became the third country to put a man in space with its own rocket, after the former Soviet Union and the United States. It sent two more astronauts on a five-day flight on its Shenzhou VI craft in October 2005.
China launched its third manned space mission in September, with live-to-air footage of its first space-walk captivating the nation.
Its first lunar probe, the Chang'e-1 satellite, named after a lonely goddess who lives with a rabbit on the moon and pines for her husband, finished its mission last month after orbiting the moon thousands of times.
"China will send a moon-lander and moon-buggy around 2012," the Beijing News said, citing state television.
Before the moon-lander, China will send Chang'e-2 satellite to fulfil another circumlunar mission, CCTV added.
China said its lunar mission would include three steps of "orbiting, landing and returning", but has not disclosed schedule of any manned moon mission so far.
Laurels for India on successful moon landing
France, chair of the 27-nation European Union has lauded India on the successful lunar exploration mission, which, it stressed, confirmed "India's eminent position among the world-class scientific and technological powers".
"France, on behalf of the European Union, warmly congratulates India for the successful landing of the Moon Impact Probe and the launch of the lunar exploration programme," the French embassy said in a statement here.
"This remarkable success of the Indian space vehicle confirms anew India's eminent position among the world-class scientific and technological powers," it said.
"France and the European Union look forward to the strengthening of the existing scientific cooperations with India in the field of space, which are particularly promiseful for the development of science and knowledge worldwide," the statement underlined.
In a milestone for the country's space programme, India planted its national colours on the moon Thursday as the foil-wrapped Moon Impact Probe landed in the Shakelton crater near the lunar South Pole.
The Moon Impact Probe, dropped from the larger, unmanned Chandrayaan-1 orbiter, sampled the thin lunar atmosphere during a half-hour free fall.
Chandrayaan-1, India's first unmanned lunar probe, was launched Oct 22. After the US, then USSR, and Japan, India is the fourth country to land a probe on moon.
"France, on behalf of the European Union, warmly congratulates India for the successful landing of the Moon Impact Probe and the launch of the lunar exploration programme," the French embassy said in a statement here.
"This remarkable success of the Indian space vehicle confirms anew India's eminent position among the world-class scientific and technological powers," it said.
"France and the European Union look forward to the strengthening of the existing scientific cooperations with India in the field of space, which are particularly promiseful for the development of science and knowledge worldwide," the statement underlined.
In a milestone for the country's space programme, India planted its national colours on the moon Thursday as the foil-wrapped Moon Impact Probe landed in the Shakelton crater near the lunar South Pole.
The Moon Impact Probe, dropped from the larger, unmanned Chandrayaan-1 orbiter, sampled the thin lunar atmosphere during a half-hour free fall.
Chandrayaan-1, India's first unmanned lunar probe, was launched Oct 22. After the US, then USSR, and Japan, India is the fourth country to land a probe on moon.
GlobalLogic records impressive growth in 2008
GlobalLogic, the global leader in product development has announced that it continued to experience solid momentum and growth during the third quarter (the company’s fiscal second quarter) ending September adding 25 new technology clients representing the mobile, healthcare, consumer and enterprise software product verticals.
The company’s revenue increased 40% through the first six months of its fiscal year, with GlobalLogic exceeding $100M in revenue for the first time. In addition, GlobalLogic grew its employee base nearly 20% during the quarter, reaching 3,000 employees worldwide. Despite the global economic slowdown, its business outlook remains promising and robust. GlobalLogic expects to continue its quarter over quarter growth.
“Considering the current downturn in the economy and its potential effects on global markets, GlobalLogic’s specialization in full software product development lifecycle services is a relatively strong sector to be in,” explained GlobalLogic CEO Peter Harrison. “Our technology clients, both early stage and established, are able to utilize their GlobalLogic partnership to attain product quality, economy and time-to-market benefits through access to our product engineering centers in the US, India, Ukraine and China.”
Other key milestones for GlobalLogic in the first half of its fiscal year, April-September, 2008 included:
* Expansion including Ukraine, where GlobalLogic is the largest technology employer, China and Israel
* Significant new client wins with Microsoft, Yahoo, Qualcomm, JDSU, Genband and Avid
* Industry recognition for GlobalLogic’s Agile-based Version 1.0 service at innovation conferences such as Demofall2008; Dataquest and Hewitt Associates for Top Employer in India and Ukraine; and Microsoft partner of the year in Central and Eastern Europe
* World-class, public markets experienced executive team additions including CFO Wayne Grubbs, and President Shashank Samant
The company’s revenue increased 40% through the first six months of its fiscal year, with GlobalLogic exceeding $100M in revenue for the first time. In addition, GlobalLogic grew its employee base nearly 20% during the quarter, reaching 3,000 employees worldwide. Despite the global economic slowdown, its business outlook remains promising and robust. GlobalLogic expects to continue its quarter over quarter growth.
“Considering the current downturn in the economy and its potential effects on global markets, GlobalLogic’s specialization in full software product development lifecycle services is a relatively strong sector to be in,” explained GlobalLogic CEO Peter Harrison. “Our technology clients, both early stage and established, are able to utilize their GlobalLogic partnership to attain product quality, economy and time-to-market benefits through access to our product engineering centers in the US, India, Ukraine and China.”
Other key milestones for GlobalLogic in the first half of its fiscal year, April-September, 2008 included:
* Expansion including Ukraine, where GlobalLogic is the largest technology employer, China and Israel
* Significant new client wins with Microsoft, Yahoo, Qualcomm, JDSU, Genband and Avid
* Industry recognition for GlobalLogic’s Agile-based Version 1.0 service at innovation conferences such as Demofall2008; Dataquest and Hewitt Associates for Top Employer in India and Ukraine; and Microsoft partner of the year in Central and Eastern Europe
* World-class, public markets experienced executive team additions including CFO Wayne Grubbs, and President Shashank Samant
Tech sector may lose 180,000 jobs
The technology sector is on pace to lose 180,000 jobs this year, the most since 2003, amid a global economic downturn, according to a report.
Challenger, Gray & Christmas, Inc, a Chicago-based global consulting firm which tracks job-cut announcements, said telecommunications, electronics and computer industry companies had cut 140,422 jobs through October 31.
It said 69,654 tech-sector jobs had been cut in the third quarter of the year alone. That did not include major layoffs announced since October 31 such as the 5,000 to 6,000 job cuts at Sun Microsystems.
"At the current pace, the year-end total could reach 180,000, which would be the largest annual total since 2003, when technology firms announced 228,325 job cuts," it said.
A total of 107,295 tech-sector jobs were cut in 2007.
Challenger, Gray & Christmas, Inc, a Chicago-based global consulting firm which tracks job-cut announcements, said telecommunications, electronics and computer industry companies had cut 140,422 jobs through October 31.
It said 69,654 tech-sector jobs had been cut in the third quarter of the year alone. That did not include major layoffs announced since October 31 such as the 5,000 to 6,000 job cuts at Sun Microsystems.
"At the current pace, the year-end total could reach 180,000, which would be the largest annual total since 2003, when technology firms announced 228,325 job cuts," it said.
A total of 107,295 tech-sector jobs were cut in 2007.
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