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December 9, 2008

Sony Announces Job Cuts; Economic Crisis Worsens
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Electronics manufacturer will cut 8,000 jobs worldwide; analysts expect
US recession to get worse 
Sony Chief Executive Howard Stringer (file photo)The latest symptoms of
the global economic slowdown are hitting wealthy nations like Japan and
poor nations struggling to feed their people. Japan's Sony Corporation
is cutting 8,000 jobs worldwide - about 5 percent of its workforce for
electronics. The company will also shut down about 10 percent of its
manufacturing plants. The news comes as Japan announced Tuesday that it
had fallen into a deeper recession in the third quarter than first
thought. Economic woes causing more hardship for poor nations The global
economic crisis is also hurting people in poor nations. The U.N. Food
and Agriculture Organization says the slowdown has added to the problems
of people already hurt by soaring food prices earlier this year. The FAO
says 40 million more people have been added to the ranks of the hungry
and malnourished. But relatively wealthier air travelers are also
feeling the economic pinch. The International Air Transport Association
says the global aviation industry faces the worst revenue environment in
50 years and is expected to lose $2.5 billion next year. Oil prices
rebound Crude oil prices rebounded in New York trading, as investors
appeared to be encouraged that the many efforts to stimulate the economy
may begin to work and boost demand for energy. Prices were also
strengthened by word that the Organization of Petroleum Exporting
Countries may cut output soon. But the influential Paris-based
Organization for Economic Cooperation and Development warned Tuesday,
that the world's largest economy - the United States - will probably get
worse before it gets better. US recession expected to worsen The group
praised Washington's stimulus efforts and interest rate cuts, but said
the government should inject more money into the economy and reform the
U.S. health care system. Meantime, in Germany Tuesday, the
closely-watched ZEW survey of investor confidence showed an unexpected
improvement in December. Confidence was boosted by interest rate cuts
and state efforts 
to aid Europe's biggest economy. Also, Germany's trade surplus grew in
October, but the outlook for exports remains bleak, due to a sharp
decline in orders for German goods.

Some information for this report was provided by AFP, AP and Reuters.