An agreement from banks to take a 50 percent loss on the face value of their Greek debt is a significant step in resolving the euro zone financial crisis, the New York Times reports. The agreement was reached early Thursday morning. The accord would bring Greek down by 2020 to 120 percent of the nation's gross domestic product. This figure, while still large, is more sustainable for an economy driven into recession by austerity measures, the Times said.
Sony Dials Up Deal to Buy Out Sony Ericsson Sony Corp
Sony is buying out its Swedish partner in a mobile phone joint venture for $1.45 billion as it seeks to catch up with Apple and Samsung in the smartphone and computer tablet markets, the New York Times reports. Until now Sony's tablets, games and other consumer electronics devices have been kept separate from the phones sold and created by Sony Ericsson. The deal gives Sony ownership of certain handset patents held by Ericsson and will enable it to integrate the joint venture's output with its own range of products and content, the Times said.
NIntendo Co Ltd forecasts its annual net loss in at least 30 years, Bloomberg reports. The net loss could reach $264 billion. Nintendo was once the world's gaming champion, but faces formidable competition from smartphone and computer tablets. 'Sales of Nintendo DS hardware and Nintendo 3DS software were weaker than expected,” the company said in the statement. “In addition, the yen appreciation was beyond expectation.”
South Korea's Economic Growth Slows
South Korea's economic growth slowed for the second straight quarter as businesses cut back investments, the BBC reports. Gross domestic product grew by 0.7 percent from July to September, down from a 0.9 percent expansion in the previous quarter. Fears of a global economic slowdown slowed capital investments. Concerns about the U.S. economy are keenly felt in South Korea, whose exports contribute almost half of its GDP.
Chrysler Workers Drive Home a Four-Year Pact
Unionized workers at Chrysler Group LLC ratified a four-year labor, closing out the first round of talks since two of the three Detroit automakers nearly collapsed and took federal bailouts in 2009, Reuters reports. The deals over all struck by the UAW and the three U.S. automakers were not as lucrative as in years past, and hemp Chrysler, Ford and General Motors align their labor costs to those paid by their Japanese, Korean and German counterparts.
Chrysler unionized workers were not as well compensated as workers at Ford and GM, but union officials said this was necessary to help the weakest U.S. automaker regain its financial footing, Reuters said.
Former McKinsey Head Indicted
Rajat Gupta has been charged with one count of conspiracy and five counts of security fraud, Financial Times reports. Gupta faces allegations that he used his position on the boards of Goldman Sachs and Proctor and Gamble to share secret company information with his friend and business associate Raj Rajaratnam, founder of the hedge fund Galleon Group. Gupta is the highest profile executive to be caught in the US government’s sweeping investigation of corruption on Wall Street. The Securities and Exchange Commission also filed civil fraud charges on Wednesday.
New Developments in Olympus Scandal
Olympus shares rose more than 10 percent in Tokyo today as embattled boss Tsuyoshi Kikukawa bowed to investor pressure by resigning as president and chairman of the Japanese camera maker. Investors had continued to focus on a questionable payment of $687 million to a little-known financial advisory firm in the 2008 acquisition of UK medical equipment maker Gyrus as well as high prices it paid in several deals in Japan, Financial Times reports. Seventy year-old Kikukawa said in a statement that he apologized for causing "worry and bother" and that he would remain an Olympus director.
Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.
A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.