Strong dollar hits Oracle profits

The business software manufacturer Oracle's profit for the three months to the end of November have slipped.

Net income only fell $7m (£4.7m) from the same period last year to $1.3bn, but it was nonetheless the first time it had not grown for three years.

Oracle said its profits would have been better if the US dollar had not strengthened so much in the quarter.

It said that if currency rates had been the same as last year its profits would have grown 11%.

"They are managing through this downturn relatively well, but they're not immune for a slowdown," said Jeff Gaggin at Avian Securities.

Oracle's revenue rose 6% during the three month period, which was worse than had been expected.

US financial watchdog boss named

Mary Schapiro has been named the next head of the US financial watchdog, the Securities and Exchange Commission.

President-elect Barack Obama officially nominated Ms Schapiro, whose role must be confirmed by the Senate.

Mr Obama said she would "crack down on the culture of greed and scheming that has led us to this day of reckoning".

The watchdog faces growing criticism for its failure to protect investors - particularly over its role in the alleged $50bn fraud by Bernard Madoff.

A former SEC commissioner, Ms Schapiro is currently head of the Financial Services Regulatory Authority.

Mr Obama said that under her leadership, the SEC would "protect investors, consumers and our entire economy from fraud and manipulation by an irresponsible few".

Madoff scandal

She previously chaired the Commodity Futures Trading Commission and served for six years as an SEC commissioner under Presidents Ronald Reagan, George H W Bush and Bill Clinton.

Ms Schapiro is well-respected in Washington circles as a regulator and is considered an effective, if somewhat low-key, administrator.

Barbara Roper, of the Consumer Federation of America, said that Ms Schapiro would bring "significant administrative experience" to the job.

That would be useful "given that we're looking at what is essentially a broken agency", she said.

'Grave concerns'

The SEC has been buffeted by criticism for failing to detect signs that major Wall Street banks were in trouble before the financial crisis erupted and for possibly lax oversight and enforcement in other areas.

As the scandal involving Mr Madoff stunned Wall Street, revelations have surfaced that staff at the SEC repeatedly failed over the course of a decade to fully investigate credible allegations against him.

SEC chairman Christopher Cox said on Tuesday he was "gravely concerned" by the breakdown in oversight and ordered the agency's inspector general to investigate what went wrong.

Senator Charles Schumer, a member of the Senate's banking committee said Ms Schapiro was "the kind of strong and experienced regulator that we very much need in these times".

"I believe her nomination could be approved quickly and without controversy in the Senate," he added.

Panasonic set to buy rival Sanyo

Japanese electronics group Panasonic has offered to buy rival Sanyo for 806.7bn yen ($9bn; £6bn).

The two firms said in a joint statement they had to take "drastic action" to boost revenue growth.

Panasonic, a leading flat TV maker, is offering 131 yen per Sanyo share, and major shareholders, including Goldman Sachs, have agreed to sell up.

Panasonic is interested in Sanyo's green energy businesses, such as solar panels and batteries.

It said in a statement it "will consider various options including a possible investment of around 100bn yen in order to achieve the synergy of both companies".

Goldman Sachs initially rejected Panasonic's lower offers.

But the investment bank decided to tender its Sanyo stake to Panasonic after reporting its first quarterly loss since going public.

Recent problems

Sanyo has been facing problems in recent years, cutting thousands of jobs and selling unprofitable operations.

Recently it has been hit by a stronger yen, rising material costs and falling gadget prices.

The same factors also contributed to a drop in Panasonic profit, as the company cut its annual profit forecast by 90% because of the global economic downturn.

But Panasonic is less dependent on exports to the US than Sanyo, a factor which has helped it do better than some other rivals in Japan.

Analyst Kazumasa Kubotaat Okasan Securities said that despite the high cost, "in the longer term the acquisition is absolutely an advantage for Panasonic".

The two companies have historical ties, with their founders being brothers-in-law.

Polaroid in bankruptcy protection

Camera-maker Polaroid has filed for US Chapter 11 bankruptcy protection amid allegations of fraud by the founder of its parent group.

Polaroid has been owned by Petters Group Worldwide since 2005, which was established by Tom Petters.

Mr Petters is now "under investigation for alleged acts of fraud that have compromised the financial condition of Polaroid," the firm said.

Polaroid said neither itself or its bosses were under investigation.

Authorities believe that Tom Petters, the founder of Peters Group, was running a £3bn fraud scheme.

But Mr Petters, who is now in custody, has maintained his innocence.

Petters Group and its venture capital unit filed for Chapter 11 bankruptcy protection in October.

Instant photography

Polaroid said the restructuring shouldn't hit its day-to-day operations, and it is "planning for new product launches in 2009".

"Polaroid has entered bankruptcy with ample cash reserves sufficient to finance the company's reorganization under Chapter 11," it said.

Polaroid is best know for inventing instant photography.

But it stopped making the instant cameras about two years ago due to falling sales in the face of the growing popularity of digital cameras.

Japan forecasts no growth in 2009

Japan's government has forecast that the country's economy will have zero growth in the year ending March 2010.

It is the first projection of no growth from the world's second largest economy in seven years.

It follows a revised projection for the current fiscal year that the economy will shrink by 0.8%, instead of the 1.3% growth forecast in July.

The Bank of Japan (BOJ) has cut its key interest rate to just 0.1%, down from 0.3%, taking it lower than US rates.

The BOJ also announced that it would increase its purchase of Japanese government bonds to 1.4 trillion yen ($15.7bn; £10.5bn) a month, up from 1.2 trillion yen.

"A small rate cut alone would not help the economy much," said Norio Miyagawa, economist at Shinko Research Institute.

"And with Japan's interest rates at nearly zero, the central bank will likely continue to adopt other measures to provide ample liquidity to help the economy."

To boost recovery after a prolonged recession, Japan kept rates at virtually zero until 2006.

'Worsening economy'

A survey earlier this week indicated business confidence in Japan was at its lowest in 34 years.

Last week the government increased its economic stimulus plan by 23 trillion yen ($255bn; £171bn).

The world's second-largest economy - and Asia's largest - shrank by an annualised rate of 1.8% in the third quarter.

"The economy is worsening very quickly and the BOJ and the government will need to keep working closely. But there is still no guarantee that announced steps will be able to stop the economy from collapsing," said Hideo Kumano at Dai-ichi Life Research Institute.

New recession

Some analysts think the government's forecast of zero growth next year was overly optimistic.

"Politically, the government couldn't forecast a contraction," said Hideki Matsumura, a senior economist at Japan Research Institute.

"A recovery is unlikely in the next two years," he said.

In recent years, Japan's economic growth was driven by exports due to high demand for cars, cameras and other goods.

After 2001, it enjoyed its longest period of economic growth since World War II until the sub-prime crisis started a year ago.

Since then the global downturn has led to global demand falling significantly, while a rising yen has also hit exporters.

Japan's economy has slipped into its first recession in seven years after two quarters of negative growth in a row.