Everyone seems surprised but was very predictable , macroeconomics were not there to allow growth in Capex but clearly predicted a shrikage.
As for weak car sales, all I can say is OUCH, if they cannot sell cars by giving them away with 0% financing and deep discounts then Next year will be bust for the carmakers and more layoffs and plant shut downs coming. As I said before, the consumer is strapped, and the only ones taking advantage of the car deals are the ones who can afford to. But they come at a high cost, you are stealing form sales in forward months to have today but at a loss. Not a good business plan to follow. Unfortunately, if manufacturer does it , the others must follow, so the all suffer.
15:01 ET Lehman on Telecom Suppliers : Lehman advises investors to continue to avoid telecom component vendors, as channel inventories remain high and carrier spending could be down as much as 30% next year. The following suppliers receive a majority of revs from telecom: AMCC, PMCS, VTSS, JDSU, AGR, XLNX, ALTR; and CSCO, LU, NT, ALA, ERICY have less than 10% revs from either telecom or networking; and BRCM and MRVL have no telecom exposure. |
