Wall Street Watch: Sony’s Downsizing, AT&T Avoids Walkout, Alcoa On Deck
Sony (NYSE:SNE) is is getting ready to slash 10,000 jobs, or approximately 6% of its workforce, reported the Nikkei. Close to half of the cuts will occur in businesses that produce chemicals and small-and medium-sized panels. New CEO Kazu Hiriai had recently said that “painful” steps will take place at the company to turn it around and this could be what he was talking about. Sony is expected to report its fourth consecutive annual loss soon.
On Sunday, AT&T (NYSE:T) dodged a large walkout after negotiations had been extended between the Communications Workers of America union, representing 40,000 employees, and the company, reported The Wall Street Journal. On Saturday, the CWA wrote on its website, “Both sides are still far apart. The pace of progress is slow and frustrating.” AT&T is trying to get its workers to take pension cuts and increase their health-care premiums and co-pays to help balance the revenue declines the company has faced in its wireline division; this encompasses old school home and business telephones and the AT&T’s U-verse television offering.
For March, China’s CPI increased 3.6% from the previous year, according to the National Bureau of Statistics. This number was higher than median expectations of 3.4% while food-related costs increased 7.5%. Caution will need to be used for adding stimulus to get growth going for the country. In addition, China’s PPI dropped 0.3 in March from the previous year after reporting no change in February.
Yahoo! (NASDAQ:YHOO) pink slips are making the rounds. Blake Irving is out as Head of Products.
Great Wolf Resorts (NASDAQ:WOLF) got a raised takeover bid of $7 a share in cash from KSL Capital Partners. The bid was upped from the rejected $6.25 bid.
The first quarter earnings season will kick off on Tuesday with Alcoa (NYSE:AA). Analysts estimate that average results will be flat to slightly lower, but growth should increase later in the year and in 2013. According to The Financial Times, only three of the S&P’s 10 major sectors including industrials, financials and technology are likely to expand.