Feeds

US Euro rescue shores up Intel, US PC vendors

Whew... Holiday season sales saved?

  • alert
  • submit to reddit

Security for virtualized datacentres

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. ®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
Bono: Apple will sort out monetising music where the labels failed
Remastered so hard it would be difficult or impossible to master it again
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.