Reuters blog archive
from Morning Bid with David Gaffen:
The focus as we head into this week is earnings, with about 10 percent of the S&P 500 set to report results. That represents about 19 percent of the market capitalization, with reports from Intel, Wells Fargo and several banks coming in the next few days.
But it's the chipmakers that have people excited; or rather, on heightened alert after Microchip Technology surprised investors last week with a warning that suggests a further slowing in chip demand worldwide.
Intel isn't the barometer it once was. It is more of a confirming indicator than a leading one when it comes to the chips, but it cannot be entirely discounted, either. Its results, out Tuesday, will say a lot for the tech sector that had, per Goldman Sachs data, outperformed just about all the major industry groups so far in 2014, with gains of 36 percent in the last 12 months and 21 percent since the beginning of 2014. And that's even with the slack performance of the sector in the last month, down more than 5 percent.
Implied volatility levels are higher as well, particularly for very liquid names like Micron and Intel. What separates Microchip from some of the others, as Eric Auchard wrote last week, is that it recognizes revenue when its distributors book sales to its approximately 80,000 customers. So without that lag, when a company of this type predicts a correction, people tend to take notice.
By Kevin Allison and Antony Currie
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.
The withering drought afflicting California and the southwest United States could spark economic warfare over water. Scarce rains have left large swaths of the country dry for, in some areas, several years. That’s happening as industries from beverages to semiconductors grow concerned about whether they will have adequate access to water in the future. For cities and states situated around the Great Lakes, as well as water technology firms, it presents a flood of opportunities.
from Global Investing:
Asian equity markets tend to be casualties of weak yen. That has generally been the case this time too, especially for South Korea.
Data from our cousins at Lipper offers some evidence to ponder, with net outflows from Korean equity funds at close to $700 million in the first three months of the year. That's the equivalent of about 4 percent of the total assets held by those funds. The picture was more stark for Taiwan funds, for whom a similar net outflow equated to almost 10 percent of total AuM. Look more broadly though and the picture blurs; Asia ex-Japan equity funds have seen net inflows of more than $3 billion in the first three months of the year, according to Lipper data.
Engineers in recent years have run into a "memory wall" as the increasing efficiency of computer processors outpaces the speed that memory chips can deliver, limiting the overall performance improvemement of high-end computers.
In the latest challenge to Intel's dominance of the PC and server industry, smaller chipmaker Nvidia is teaming up with the Barcelona Supercomputing Center to develop a supercomputer that will run on energy efficient ARM processors.
With the massive data centers that power the Internet consuming an ever increasing amount of electricity, energy efficiency is becoming a priority, and many companies are looking toward the technology behind our smartphones and tablets to do the job.
from Reuters Investigates:
Two more special reports from Japan today: first up, a look at how globalization has made companies around the world vulnerable to a shock like the earthquake. "Disasters show flaws in just-in-time production."
The PDF version, here, has a nice graphic showing the location of Japan's ports, some of which have been hard hit by the disaster.
Football players infamously take a serious amount of punishment. Now, Intel is offering up a way to measure the extent of that pootential physical damage.
Intel is currently working with universities and a sports equipment maker to build an intelligent football helmet.
Microsoft has acquired Canesta, which designs microchips that it says enable computers to see images in three dimensions, according to the privately-held Sunnyvale, California-based company.
The purchase comes as Microsoft prepares to launch its Kinect motion-controller next month, hoping to spark sales of its xBox video game consoles. Buying Canesta, whose technology focuses mainly on consumer applications, suggests Microsoft is already eyeing more and better movement-recognition products down the line for its video game system as well as other applications.
Good news for us computer geeks! PCs are nearly ready to ditch hard drives for faster, less energy-intensive drives with flash memory, like in a camera or cell phone, according to memory maker Micron, which ought to know. That is exciting news for victims of crashed hard drives and people who always want something new.
"I think it'll be a story in 2011, and it'll be pretty good penetration in 2012. But, you know, maybe I'm wrong," said Mark Durcan, president and chief operating officer of Micron, during the Reuters Global Technology Summit.
(Posted by Clare Baldwin)
AMD first raised the issue in a blog post in March, but is again making the rounds to convey its message that current standards, which it says measure the equivalent of standby mode in a cell phone, is misleading consumers.