The weakening Euro and the troubled European economy has financial advisers and accounts ready for dramatic action at Sony Entertainment.
Sony Entertainment has warned that if the Euro continues to weaken under these harsh economic conditions that it will severely affect its financial securities in the territory stating it will have a, “huge impact” on its business worldwide.
The European market is but one of 3 large areas Sony is heavily invested in, the Americas and Asia being the other two. If any of the European countries default on their international loans this could dramatically affect the Euro against other, stronger currencies. Greece and Spain are currently the most at risk of default in the European nation.
“There are no countermeasures that we can take for the moment,” said Sony’s corporate treasurer Hiroshi Kurihara told Bloomberg. “There is a huge impact on our earnings.”
The largest direct result of a weakened Euro would be Sony’s Japanese exports to the European region. With a lowering Euro and strong Yen, the cost for Sony made products could skyrocket for consumers. With the holiday season, the largest growth for any retailer, just around the corner concerns are that Japanese products would soon be out of budget for the countries on the brink of economic collapse.
SOURCE | BLOOMBERG