Recession hits tech and telecommunication companies

Sony posted a loss for the first time in 14 years

 

 

The tech and telecommunication sectors took a big blow in teh past 24 hours as company announcements showed the vulnerability of such sector.

Sony was the first company to start the round of negative announcements as it posted its first loss in 14 years. 

Nokia then followed. It said that its sales were set to go down by 10% in 2009. This means that the mobile phone market will get smaller and more competitive in 2009.

But, possibly the worst result of the day was Microsoft which announced it is going to axe 5,000 workers for the first time since 1975. This is 5% of Microsoft’s workforce. 

It was Samsung’s turn early this morning when it posted its first quartlerly loss ever. This sent its shares in Seoul down 4%.

However, Google saved the day posting financial results that beat analysts’ expectations.

China to help 74 million poor, not MSN

China Daily reports that the Deputy Minister of Civil Affairs announced a plan aimed at giving poor families in urban and rural China a bonus of around €10 (Yuan 100 – 150). Old party members will however get 180 Yuan to stave off the crisis that is hitting China. It is estimated that more than 74 million Chinese will benefit from this initiative.

However, as this video shows, there are more than 74 million Chinese deeply under the poverty line:

Meanwhile the same portal reports that the Chinese government released a list of web sites spreading immoral content, including pornography. This list includes Microsoft’s MSN China.