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To: j g cordes who wrote (39628)	5/30/2003 7:44:40 AM
From: j g cordes	Respond to of 69967

Microsoft-AOL Deal May Boost Market 5/30/2003 7:30:00 AM NEW YORK, May 30, 2003 (AP Online via COMTEX) -- U.S. stocks are seen opening on a modestly bright note Friday with Microsoft Corp. likely to lead the way after settling its differences with AOL Time Warner Inc. ======= Note: I think this is positive for MSFT. $750 million is a cheap 7 year cost to insure the kind of product dominance this 'settlement' guarantees MSFT in the world's largest internet subscription service. Since this is more money than AOL has earned in its lifetime, its actually Microsoft buying a partnership that directly connects them to a large customer base. This a win for MSFT. Jim

To: j g cordes who wrote (39628)	5/30/2003 11:55:33 AM
From: Johnny Canuck	Respond to of 69967

Chip sales growth stalls in April By Reuters May 30, 2003, 7:21 AM PT Semiconductor sales growth worldwide slowed more sharply than expected in April, highlighting the effect of weak consumer demand for PCs and cell phones, according to an industry group. Monthly sales of $12.14 billion were flat compared with March sales and up just 9.7 percent from the same month a year ago, down from growth rates of more than 20 percent earlier this year, the World Semiconductor Trade Statistics (WSTS) group said Friday. Sales in the Asia-Pacific region and Japan, where most chip and electronics producers are based, rose slightly compared with March sales, while sales in the Americas and Europe declined, the group said. April sales were weaker than expected, continuing a growth slowdown amid weakening Asian consumer demand for PCs and cell phones because of the outbreak of severe acute respiratory syndrome, analysts said. Many see demand stagnating in the second half of the year. "The $12.14 billion is lighter than expected. End demand has been disappointing in April. Should this continue, semiconductor vendors...will end the quarter with higher inventories," said Deutsche Bank analyst Nicolas Gaudois. Chips are used in everything from computers and cell phones to toys and cars. Sales growth has slowed this year as a recovery from the industry's worst-ever downturn lost momentum, reflecting general economic weakness, the effect of the Iraq war and SARS, which is hurting demand especially in China. Sales slowdown The U.S.-based Semiconductor Industry Association (SIA) last month trimmed its estimates for the chip industry. It initially expected 20 percent revenue growth and adjusted that to "double digit" expansion. Yet, many financial analysts see even that as optimistic and expect sales to rise between 5 percent and 10 percent. The WSTS numbers, a three-month moving average published by the European Semiconductor Industry Association (ESIA), offsets recent bullish remarks by Franco-Italian semiconductor maker STMicroelectronics and reaffirmed guidance by U.S. chip-equipment maker Novellus Systems. STMicroelectronics told analysts this week that it believes the global chip industry could grow by 11 percent this year and that it might increase its investments by $200 million to $1.2 billion if the industry remains robust, J.P. Morgan Chase said in a note. The main U.S. chip index, the Philadelphia Semiconductor index, closed 3.1 percent higher on Thursday at its highest level in nearly six months. The index has nearly doubled in value from a low seen in October.