Jun

17

Eddie Bauer Begins Bankruptcy Proceedings

June 17, 2009 · By Kalyani Mukherjee Filed Under Finance | Leave a Comment 

Eddie Bauer became the latest high profile corporate entity to buckle under recession when it filed for bankruptcy on Wednesday. The retail company declared that it was being compelled to declare bankruptcy under pressure of enormous debt payments and sharp drop in customer spending.

Eddie Bauer Holdings Inc is believed to have lost almost half a billion dollars in the past three years. As of May this year, the retailer reported running up $289.5 million in debt which includes $187.8 million in term loans and another $75 million in convertible notes in the fiscal year 2008 the company reported net losses of $165.5 million while in the first quarter ending April this year, it had incurred another $44.5 million in net losses.

Eddie Bauer’s declaration of bankruptcy is the latest instance in a wave of several major retailers falling prey to the deep and prolonged recession. Among other retailers to have downed shutters in the past few months are Linen n Things, Circuit City and Joe’s Sports and Outdoors. Most retailers, barring the discount ones like Wal-Mart, have suffered a steep drop in retail revenue across the board while specialty retail departments have come off worse with some of them incurring double-digit, same-store losses.

Jun

17

US Moots Reforms in Federal Reserve

June 17, 2009 · By Kalyani Mukherjee Filed Under News | Leave a Comment 

 The US president has plans to invest the Federal Reserve with greater powers but is aware that the reforms will have to be balanced out with a new regulatory body.

The US administration has released a report titled “Financial Regulatory Reform: A New Foundation” which calls for broad changes in the structure of the central bank and suggests ways to bolster it powers. Among the ways in which it could do the latter is to act as the supreme regulator of major, interconnected corporate entities whose difficulties could throw the entire financial system into turmoil. According to other proposals in the report, the Federal Reserve would also being given the power make emergency payments and settlements so that the financial system can continue to run smoothly in even of a crisis.

However the administration’s report is likely is to be criticized in the Congress for investing too much power with the central bank. Already several critics have argued that the Federal Reserve should focus more on monetary policy rather than regulation corporate entities.

However suggestions for reforms in the structure and power of the central bank come with another proposal of setting up a new interagency council which will monitor the workings of the bank as well as threats to the entire financial system.

Jun

2

GM owes $9.6M to ArcelorMittal

June 2, 2009 · By Purnima Filed Under Finance, News | Leave a Comment 

US auto giant, bankrupt General Motors has to pay $9.55 million (almost Rs 45 crore) in trade debt to the steel maker ArcelorMittal.

The US auto making giant, which filed for bankruptcy protection under Chapter 11 on Monday, owes as much as a staggering $172.81 billion in total debts to its 50 largest credit providers including the world’s largest steel maker ArcelorMittal.

Filing the bankruptcy in court in the Southern District of New York, GM announced that the company faces a “trade debt” of $9.55 million that it has to pay to the NRI-billionaire Lakshmi Mittal-led ArcelorMittal. According to the filing, GM has assets worth $82.29 billion.

Amongst the other 50 largest credit providers named in the filing, GM owes the maximum to Wilmington Trust Company, another staggering $22.76 billion, followed by International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), which are expecting a huge $20.56 billion.

May

29

World likely to emerge in early 2010: IMF chief

May 29, 2009 · By Purnima Filed Under News | Leave a Comment 

The head of the International Monetary Fund on Friday expressed that the global economy is likely to emerge out of the current fiscal crisis early next year. The global recession worldwide, known as the worst since The Great Depression of the early 1930s, has so far hit almost all the sectors of the market, brought down the consumer demands and has had a subsequent slump in production as well.

However, the body said that even after the revival, world financial systems must be monitored closely.

Speaking to a conference in Morocco, IMF Managing Director Dominique Strauss-Kahn said, “We expect to get out of the crisis early in 2010, especially if a clean-up of certain segments of the financial system is carried out.”

He further added, “We should not forget the task of continuing to monitor the global system once we emerge from the crisis.”

May

25

Japan’s Toshiba plans to cut costs

May 25, 2009 · By Purnima Filed Under News | Leave a Comment 

The recession hit economy of the country has taken its toll on many of the giants from all the sectors. The companies have been looking at chalking out effective cost cutting techniques and methods, including handing pink slips, cutting production, shutting units and reducing incentives of the top officers. The latest to join the giants is Toshiba.

Japanese electronics giant Toshiba is planning to reduce the company’s fixed costs by 10 per cent more than it previously announced, a newspaper reported on Sunday.

The electronics giant will cut $3.5 billion (330 billion yen), ideally allowing itself to secure an operating profit of 100 billion yen in the 2009 financial year, the Nikkei newspaper reported.

Toshiba posted an operating loss of 250 billion yen in financial year 2008.
Another electronics company, Sony has announced on Thursday that the company would cut its number of suppliers by more than half in an attempt to reduce the procurement costs by $5.3 billion a year. On the other hand, Hitachi is also planning to cut such expenses by 200 billion yen, the newspaper reported.

May

23

UN faces a a $1.5 billion gap in budget

May 23, 2009 · By Purnima Filed Under News | Leave a Comment 

The United Nations is expected to face a staggering $1.5 billion gap in its annual budget for the financial year 2008-09. This deficit is seen as a direct outcome of the raging recession in the member countries contributing the most to UN’s annual budget, United States, Britain, China and Germany.

Under-Secretary-General for Management, Angela Kane, told that the countries in arrears are Brazil, China, Germany, Iran, Mexico, Norway, Republic of Korea, the United Kingdom and the United States. These together accounts for as much as a 90 per cent budget gap!

As of May 7, the listed arrears are $993 million (US), $121 million (UK), $104 million (Germany), $53 million (South Korea), $33 million (China), $21 million (Brazil), $19 million (Norway), $13 million (Iran) and $13 million (Mexico).
The remainder is about $85 million.

Kane said she understands the present fiscal downturn at the global level. “Member States are having a harder time meeting their financial obligations, ” She said.

May

21

Japan’s GDP shrinks 15.2%

May 21, 2009 · By Purnima Filed Under News | Leave a Comment 

Japan’s economy shark at the fastest pace in nearly 14 years, since 1955, by almost 15.2 per cent as its exports plunged sharply.

Many of the Japanese countries, from all sectors of the market, slashed their production due to slump in global demand, shut factories, cut its workforce in their attempt to come up with an effective cost saving strategy in the recession hit current financial year.

According to the Japanese government Japan’s gross domestic product (GDP), came down by a staggering annual pace of 15.2 per cent in the January-March period.

The current drop is not only the steepest in more than five decades, but also marks the fourth consecutive quarter of decline for the country’s GDP after a revised 14.4% for the October-December period.

In a parliamentary budget hearing, the PM Taro Aso said, “Weakness in the corporate sector is gradually spreading to households. This is a very serious situation, so we need to respond appropriately.”

May

19

Nokia to slash another 490

May 19, 2009 · By Purnima Filed Under Lead Story, News | Leave a Comment 

Nokia on Tuesday announced the company’s plan to slash another 490 jobs from its global workforce.

The world’s largest mobile phone maker, announced to cut as many as 170 positions in logistics, production management and production support areas.

Amidst the global recession, the phone making giant was hit badly by the slump in customer spending and subsequent fall in demand. Nokia has already announced over 3,500 job cuts this year in their cost saving attempts.

In an official statement release by the company, it said, “its re-organizing efforts would globally affect nearly “170 employees working in logistics, production management and production support. The plans do not affect production employees at Nokia’s mobile device manufacturing facilities”.

Nokia has also planned to offer Voluntary Resignation Package for 320 employees at its mobile device manufacturing facility in Salo, Finland. Earlier in the month of February, 1,000 such packages were handed.

The company’s official statement said, “These measures are part of Nokia’s previously announced plans to adjust its business operations and cost base in accordance with market demand and safeguard future competitiveness.”

May

16

Panasonic slumps to $4 billion annual loss

May 16, 2009 · By Purnima Filed Under News | Leave a Comment 

Panasonic Corp. reported a huge $4 billion (378.96 billion yen) loss on Friday for the financial year ended March. This was the first annual financial loss in the past seven years for the company.

The Japanese electronics giant, Panasonic sank deep into the red last year after being marred by a stronger yen and sharp slump in the consumer demands across the globe.

The Osaka-based electronics company also said that the company expects to stay in the red in the present financial year too.

The demand for its flat-screen TVs, digital cameras, home appliances and semiconductors dropped considerably and the subsequent sales came down by 14.4 per cent to 7.77 trillion yen. The company’s operating profit too dropped by 86% to 72.9 billion yen.

The company, last financial year enjoyed a huge record profit of 281.9 billion yen.

The major rival, Japanese Sony Corp too on Thursday posted its first annual loss of $1 billion yen in 14 years.

Panasonic is also awaiting legal clearance for its $9 billion takeover of smaller Japanese rival Sanyo Electric Co.

May

15

Rugs

May 15, 2009 · By ProfitEdition News Filed Under News | Leave a Comment 

Rugs can change the entire look of a room. An ordinary room can look like the most luxuriant room. Remember the look of the King’s room in the palace in the movies? Well you too can have that look and guess what all you require are cheap rugs.

This is one site that has it all. They have Persian and they have oriental. They have rugs, rugs and more rugs. You name the budget and they have a rug for that price. Sounds great doesn’t it. Superior rugs is simply a treat for rug lovers.

They have been in the business of rugs over more than 20 years. Now isn’t that some experience?
Their area rugs come with a 30 day guarantee and they assure of great service. The site simply has a lot to offer to the rug buyer.

A definite treat for a rug buyer.

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