Feeds

US Euro rescue shores up Intel, US PC vendors

Whew... Holiday season sales saved?

  • alert
  • submit to reddit

Internet Security Threat Report 2014

According to an unnamed German Finance Ministry official quoted by the WSJ, it Intel's profit warning on Thursday - which resulted in a general sharp intake of stock - may have been the catalyst that finalised the US decision to support the Euro on Friday.

But exploratory talks had started earlier in the week between the European Central Bank (ECB) and the US Treasury. The hook was that US products were becoming too expensive in Europe, and from the US point of view, exports from the Euro zone were becoming too competitive. The approach of the Christmas selling season was another reason to ensure that US remained competitive, so some support for the Euro was seen to be in order.

First-tier PC manufacturers like Compaq, Dell, Gateway and HP all claim to be on-track with their sales in Europe, with analysts suggesting a 17 per cent increase in unit sales - but less in revenue terms, because margins have become less. With the choice being between even slimmer margins and higher prices, prices may go up. The result is likely to be weakened demand for PC's in Europe this quarter; those with a significant proportion of components made in the Euro zone would be in the healthier position.

Intel's warning meanwhile may have been no more than the company's just deserts. Shortages being the watch-word, some companies ordered double quantities from Intel, then cancelled when the situation eased.

the US stressed that the $3-5 billion support for the Euro came "at the initiative of the ECB", since pushing down the dollar is not exactly a popular political thing for Treasury Secretary Lawrence Summers to have done close to an election - and when the US is also anxious to stop an outflow of dollars in view of the enormous trade deficit.

The Euro has fallen around 18 per cent since January 1999, and intervention could continue this week. Intel was downgraded by ten financial analysts out of 25, with a "sell" recommendation being made by an eleventh. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.