World economy talk

[Monseratto]

Sony to Cut 8,000 Jobs, Shut Plants, Reduce Spending
http://www.bloomberg.com/apps/news?p...rjU&refer=home

With the Americans no longer the World's # 1 consumer, who'll replace them? With no one willing to spend themselves until they are deep in debt, this recession will be a long one.

[uls]

No one can replace the US

Not even 1.3 billion mainland Chinese

They cannot consume like 300 million Americans

there is now a huge hole in global consumption

[Monseratto]

Speaking of China...

Obama to Borrow China’s Wealth, Clout in Effort to Steady World

Dec. 9 (Bloomberg) -- Thirty years ago this month, President Jimmy Carter held secret negotiations to establish formal diplomatic ties with a poor, insular communist China. President-elect Barack Obama will inherit a relationship with a China whose wealth and influence are essential to rescuing the world economy.

Resolving almost any international problem now -- from reducing North Korea’s potential nuclear threat to slowing global warming -- requires Beijing’s cooperation. The financial crisis also underscores China’s importance: Its $1.9 trillion in foreign reserves will be indispensable in helping to avert a global economic meltdown.

Every president since Carter has come to office lambasting Beijing about espionage, unfair trade practices, violations of human rights and threats to Taiwan -- before being compelled to work with the Chinese government on common interests.

With the U.S. now officially in a recession, China holds more cards than it did even a few months ago. Washington is more reliant on Beijing -- the largest holder of U.S. Treasuries -- to buy more government securities to finance deficit spending. China’s massive trade surplus has enabled it to accumulate more foreign-currency reserves than any other nation, according to Bloomberg data.

“It’s one of the few players in the world, besides the Saudis, who is sitting on a lot of cash and can help save the international financial system,” says Victor Shih, author of “Factions and Finance in China.”

Some fear America’s reliance on China’s money means the White House will bite its tongue when the country acts against U.S. interests or values.

“If there were not a global recession and crisis, I would expect the Obama administration to take a stronger stand on Tibet and human rights,” says Shih, a professor at Northwestern University near Chicago.

There’s no incentive for China to stop buying U.S. securities; it needs a safe investment for dollar reserves, and its growth depends on the health of the U.S. economy. Congress also may hesitate before demanding trade barriers against a country that’s the main source of cheap goods for budget- conscious consumers

The president-elect will be able to turn for help to the China-savvy individuals he has brought into his circle. Timothy Geithner, 47, Obama’s choice for Treasury secretary, studied Chinese and has lived in China. His transition team includes Jeffrey Bader, a China specialist with a 27-year career in government that spans trade and national security.

Interdependence will work to both countries’ advantage, Shirk says, “if it motivates us to do our best to cooperate rather than taking potshots.”

http://www.bloomberg.com/apps/news?p...9c0&refer=home

[tidus1203]

No one can replace the US

Not even 1.3 billion mainland Chinese

They cannot consume like 300 million Americans

there is now a huge hole in global consumption

Yep the Chinese as a culture live a more frugal life than the Westerners. They save 30% of their income. While it has waned in the new generation, there is still a sense of being in debt as BAD. Simply put we just have to live in a world with a much smaller consumption. Afterall, the West had a consumption bubble that just popped so it has to correct.

[Monseratto]

Sony to Cut 8,000 Jobs, Shut Plants, Reduce Spending
http://www.bloomberg.com/apps/news?p...rjU&refer=home

Ngii...dinagdagan pa!

Sony Will Cut 16,000 Jobs as Recession Curbs Demand (Update1)

The job eliminations will take place in the electronics division and include 8,000 contract workers, it said.

http://bloomberg.com/apps/news?pid=2...1KY&refer=home

Don't count on a cheaper Bravia flat screen anytime soon.

The Bravia-brand TV maker said it will “adjust” pricing to cope with the stronger yen, two weeks after saying it didn’t have plans for “massive cuts” in prices in the U.S.

The yen has surged 21 percent against the dollar and 39 percent versus the euro this year, damping the value of Sony’s earnings from overseas.

Sony to hike some product prices in Europe from 2009

TOKYO, Dec 9 (Reuters) - Sony Corp (6758.T: Quote, Profile, Research, Stock Buzz) said on Tuesday it would raise prices of some electronics products in Europe from the beginning of 2009. (Reporting by Taiga Uranaka)

http://www.reuters.com/article/marke...00309520081209

[tidus1203]

Well too bad for Sony wrong timing to raise prices. A strong Yen (not because of a strong Japan, but the reversal of carry trades) hurts them, on the other side of the coin there is Samsung of South Korea where the KRW (Korean Won) has been Asia's worst performing currency. It started the year nasa W900 to a USD ngayon nasa W1450 na ata... That's good for Samsung at least they could maintain their prices and gain a bigger profit in terms of KRW or lower their prices and kill the competition...

[uls]

Lack-of-confidence indicator, fear indicator, i-don't-care-about-return-on-capital indicator, just-preserve-my-capital indicator:

Treasury Sells Three-Month Bills at the Lowest Rate Since 1929
http://www.bloomberg.com/apps/news?p...d=aPOndwHQsnOg

Dec. 8 (Bloomberg) -- The Treasury sold $27 billion in three-month bills at the lowest rate since it starting auctioning the securities in 1929 amid record demand for the safety of U.S. debt during the worst financial crisis since the Great Depression.

The bills were sold at a high discount rate of 0.005 percent, the Treasury said today in Washington. At last week’s auction, the bills drew a rate of 0.05 percent. The government received bids for the bills totaling more than triple the amount sold.

.005%

[uls]

Uncle Sam, take my money... pleeeeez... take my money

Treasury Yield Falls to Zero As Investors Seek Safety
http://www.cnbc.com/id/28143828

Investors fearful of deflation and riskier assets scrambled to hand over cash to the US Treasury in return for no interest at an auction Tuesday, while some T-bill rates fell below zero in the market.

Pressures on fund managers to stock up on the safest possible assets in advance of year-end book-balancing added to the bid for government securities, traders said.

The U.S. Treasury Department said it sold four-week bills at a high rate of 0.000 percent, a level never before seen, in a $30 billion auction.

When Treasury bill rates turn negative it shows that investors are so concerned about the safety of other assets that they are willing to effectively pay the U.S. government a fee to look after their money.

Rates for three-month bills in the market fell below zero, according to fixed-income trading platform Tradeweb.

less than zero

Treasury Bills Trade at Negative Rates as Haven Demand Surges
http://www.bloomberg.com/apps/news?p...at0&refer=home

Dec. 9 (Bloomberg) -- Treasuries rose, pushing rates on the three-month bill negative for the first time, as investors gravitate toward the safety of U.S. government debt amid the worst financial crisis since the Great Depression.

[tidus1203]

That's a lot of bull. I would rather just put my money in a fire safe then give it to the government for nothing in return...

[uls]

actually talo ka pa nga ng konte

u end up having to pay the Treasury to take your money

abnormal times

[tidus1203]

What???? Why do that then, I don't get it? Pay the Treasury money just for holding your money? Then putting it in a firesafe would be better at least its free... These people are crazy, we still have inflation although falling its still positive so you are really killing yourself by buying treasuries.

[uls]

yep

baligtad ang mundo ngayon

fear is in the air

meron dark clouds sa horizon

meron dadating na di maganda

[tidus1203]

You know what I have a better idea. Why not get into Japanese Yen and buy JGB's instead at least those still have a yield mga 1.4% for a 10 year. Yun nga lang there is currency risk, but then most likely if I am right you might even make money as I still believe the JPY is going to appreciate over time.

[badsekktor]

Ngii...dinagdagan pa!



http://bloomberg.com/apps/news?pid=2...1KY&refer=home

Don't count on a cheaper Bravia flat screen anytime soon.





http://www.reuters.com/article/marke...00309520081209

Well too bad for Sony wrong timing to raise prices. A strong Yen (not because of a strong Japan, but the reversal of carry trades) hurts them, on the other side of the coin there is Samsung of South Korea where the KRW (Korean Won) has been Asia's worst performing currency. It started the year nasa W900 to a USD ngayon nasa W1450 na ata... That's good for Samsung at least they could maintain their prices and gain a bigger profit in terms of KRW or lower their prices and kill the competition...

i guess i'll be getting the LG...... i've seen one 39 inches lcd for only 29 thou! real bargain! sayang, sony fanatic pa man din ako.... from phones, consoles, portable gaming systems, etc.....

[uls]

wag ka muna bumili

hintay lang

sigurado magbababa ng presyo ang mga appliance center

kahit anong brand

[tidus1203]

BREAKING NEWS: White House and Congress finally agree on a $15B bailout for the auto industry.

http://www.bloomberg.com/apps/news?p...WoM&refer=home

Why am I not surprised at all? Pa-pogi lang yung mga senators trying to sound like a hero by berating the BIG 3 CEO's pero sa huli bailout din pala Hay nako another bandage solution for a cancer like problem...

[uls]

Ganyan talaga

Bailout nation

[tidus1203]

Hahahaha bailout nation nga kawawa talaga mga apo ng mga Amerikano ngayon. Look at how much debt they are inheriting from the stupidity of their forefathers.

[uls]

the baby boomers are saving their asses at the expense of the future of their grandchildren

[tidus1203]

Kaya nga in the long run I believe there will be a multi-polar world compared to the uni-polar world we have now where the US us the sole superpower ika nga. I don't believe that nations can be strong when it is ladened with so much debt. Imagine mo, without China funding the US, the US will not have the money to continue its standard of living.