Sony Corp. (NYSE ADR: SNE) is facing the first consecutive annual loss of its 63-year history.

First, a historical note…US equities have just come off their best July since 1989. Overall, the market is up over 8% for the year. But if we look backward (after all, hindsight is 20/20), March 1989 also saw a huge run up. It was followed by an even stronger rally in July, during which volume dried up. It appears the same is happening now. What came next in 1989 was a big sell-off in September, followed by an even greater one in October.

Investors who pay attention to Japan’s looming election can expect to be well-rewarded for their time.  Normally, we confess, Japanese elections don’t matter much, because the same guys always win. However, this one – set for Aug. 30 – looks different: It may actually bring about the first real change in Japan’s government in 55 years. That’s important.

Japan’s Cabinet Office said today (Wednesday) that economic output fell to its worst levels ever, tumbling an annualized 15.2% in the first quarter, as the worst recession in 60 years hammered exports and consumer demand.

Despite a falling US$ and wall-to-wall bad economic news, someone was there to sell off gold and silver as soon as Globex trading began in the Far East on Monday morning. After that, there was a stair-step down in the price…four different bouts of not-for-profit selling…2 a.m., 5:00 a.m., the Comex open…and shortly before lunch in New York. All times are Eastern. After each suspicious sell off, gold tried to rally…but each attempt, big or small, ran into a willing seller. Neither metal had a chance.

Joining a chorus of ailing U.S. automakers, Toyota Motor Co. (TM) yesterday (Monday) forecast its first operating loss in 71 years on plummeting demand and sharp appreciation of the Japanese yen. The announcement prompted Moody’s Investors Service to consider downgrading the company’s top-rated credit.

Panasonic Corp. (ADR:PC) said today (Friday) that it will spend up to $9 billion to acquire majority stake in rival Sanyo Electric Co. Ltd. (OTC:SANYY).

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Surrounded by global recession, Tokyo-based Sony Corp. (ADR: SNE) said it plans to eliminate 16,000 jobs, the biggest of several moves intended to cut more than $1.1 billion (100 billion yen) from its annual expenses by March 31, 2010.