Sat, May 02, 2009 page10

• World Business Quick Take

  • AGENCIES
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  ■JAPAN

  Unemployment rises

  The jobless rate jumped to its highest level in more than four years in March and household spending extended its slide, underscoring the ongoing pain for the world’s second-biggest economy. The Ministry of Internal Affairs and Communications said yesterday that unemployment rose to 4.8 percent, up from 4.4 percent in February and the worst reading since August 2004. The actual number of unemployed jumped 25 percent from a year earlier to 3.35 million, while the number of employed workers fell 1.4 percent. Anxiety over jobs led families to spend less, with average monthly household spending declining 0.4 percent from the previous year.

  ■BANKING

  Credit card firms on notice

  The US House of Representatives voted overwhelmingly on Thursday to rein in credit card companies accused of duping and gouging consumers already hurt by the paralyzing global recession. Spurred by the US public’s anger at banks, lawmakers voted 357-70 for legislation aimed at curbing arbitrary interest rate increases and ensuring cardholders who pay bills on time do not face unfair penalties and fees. The “Credit Cardholders Bill of Rights” also seeks to shield consumers from misleading small print in card contracts, empower cardholders to set their own credit limits and require companies to fairly allocate payments. The legislative battle now moves to the Senate.

  ■UNITED KINGDOM

  Insolvencies hit record high

  Nearly 5,000 companies in England and Wales went into liquidation and a record number of people succumbed to insolvency in the first three months of the year, official data showed yesterday. The Insolvency Service said company liquidations rose 56 percent from a year ago to a seasonally-adjusted 4,941. Personal insolvencies rose 19 percent to a seasonally adjusted 29,774, the highest since records began in 1960. The figures show the continuing pressures facing businesses and consumers as Britain suffers its sharpest economic decline in decades and analysts expect conditions to remain tough for many months to come.

  ■BANKING

  Macquarie profits slump

  Australia’s biggest investment bank Macquarie Group said yesterday its annual profits had more than halved, as it was hammered by massive asset write-downs sparked by the global economic crisis. Macquarie, once dubbed the “millionaire’s factory,” recorded its first profit fall in 17 years, dropping 52 percent to A$871 million (US$632 million) from A$1.8 billion a year earlier. The bank booked A$2.5 billion in asset and loan write-downs in the year to March because of deteriorating market conditions, including the falling value of funds. Market conditions are likely to remain tough as much of the world slips into recession, but there were signs of stabilization in March and last month, the bank said.

  ■TELECOMS

  Motorola losses grow

  Weak cellphone sales dialed down first-quarter sales and revenue at Motorola, the company reported on Tuesday. But it predicted that a series of new phones, powered by Google’s Android operating system, would turn its fortunes around later this year. Motorola’s net loss grew to US$231 million, compared with US$194 million a year ago. Sales slumped to US$5.37 billion compared with sales of US$7.4 billion last year. The company’s problems stem from its inability to come up with a successor to its hit Razr phone earlier in the decade.
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