The Great Debate UK

from Commentaries:

Bon chance getting this deal done, Alcatel-Lucent

Photo

It beggars belief that humbled telecom equipment supplier Alcatel-Lucent could be scooped up by a Chinese rival with nothing better to do. Huawei or ZTE seem credible candidates. The question is, why would they ever bother?

PLA soldiers perform during a rehearsal of a musical drama in Beijing

That didn't stop shares of Alcatel-Lucent from rocketing up as much as 21 percent on Wednesday on rumors of an unnamed suitor. Momentum was helped by a rating upgrade on the depressed stock by French broker Natixis. The shares later settled back somewhat to trade at 2.75 euros, up 12 percent on the day in Paris.

Why would a Franco-American company that is widely considered a failed example of industry consolidation be doing the same thing over again, but with the added complexity of China in the mix?

The typical explanation for cross-border mergers involving Chinese buyers is to acquire Western branding for goods produced at lower cost in China. But didn't BenQ's 2006 acquisition of Siemens mobile handset business spell the end of that kind of easy cross-border logic?

from Commentaries:

Tech results give few clues to economy: Eric Auchard

Photo

Windows 7 touchscreen demonstrationBy Eric Auchard

LONDON, July 24 (Reuters) - Investors have proved all too ready to interpret positive earnings trends from Intel, IBM and Apple as signs of economic recovery and to justify a continued rally in technology stocks.

Now they are taking the wrong lessons in reverse by reading disappointing results from Microsoft Corp as evidence that a nascent rebound in the economy has stalled.

from Commentaries:

Don’t read too much into Intel’s success: Eric Auchard

Photo

By Eric Auchard

Intel CEO Paul OtelliniLONDON (Reuters) - Intel Corp has cheered up investors by once again making forecasts about its financial performance. The trouble with reading too much into its rebound, however, is that this is largely due to productivity gains of its own making, rather than a broader awakening of demand.

To be sure, Intel's revenue, profit and margins surged past all published analyst expectations for the second quarter. Partly, this was merely the "snapback" that occurred after Intel throttled back production to as low as 25 percent of factory capacity in the first quarter, amid a glut of unsold chips and shriveling demand.

from The Great Debate:

China’s Web filtering starts in the West

Photo

Eric Auchard-- Eric Auchard is a Reuters columnist. The views expressed are his own --

The Chinese government has backed away from mandating filtering software on all personal computers in China, in a move that averts a dangerous escalation in its censorship powers.

But however controversial and unworkable China's plan to require Internet filters on PCs proved to be, Western firms have largely themselves to blame for creating and selling such filters in the first place.

from The Great Debate:

How Apple can take bite of business market

Photo

Eric Auchard-- Eric Auchard is a Reuters columnist. The opinions expressed are his own --

Apple Inc is taking steps to make its computers run on corporate networks, but these moves fall far short of ensuring Mac users win equal standing in business.

Full corporate access for Apple computers inside businesses remains years away. If and when it comes, acceptance is more than likely to be the result of broad trends reshaping the office computer market, rather than Apple's own product genius.

from The Great Debate:

Computer industry hopes lie in the clouds

Photo

ericauchard1-- Eric Auchard is a Reuters columnist. The opinions expressed are his own --

No one can easily define it.

But the next phase of the computer revolution is busy being born out of the ashes of the current economic crisis. The new approach delivers computing power as a service over the Web, like an electric utility, instead of making customers buy computers they manage themselves.

It goes by the hazy term of "cloud computing."

Forget your tidy distinctions between hardware and software, networking and storage, the Web and the desktop. Most disappear as they merge into the cloud.

from The Great Debate:

China Inc. takes stock after overseas buying spree

wei_gu_debate-- Wei Gu is a Reuters columnist. The opinions expressed are her own --

Abundant liquidity, government support and a strong yuan fueled Chinese companies' overseas buying spree.

But since they went out at the peak of the market and did not have a clear strategy for acquisitions, it should come as no surprise that most of those deals have turned sour. Once bitten, twice shy.

  •