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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Sonki who wrote (4718)	1/21/1998 11:18:00 PM
From: miraje	Read Replies (2) \| Respond to of 74651

<<After market close, MICROSOFT CORP CFO Greg Maffei said the current economic crisis in Asia could have a "major" impact on the company's business. "The big problem is Asia," Maffei said in an interview. "Asia could have a major impact on our business over the next few quarters." He said Asia makes 1998's outlook "cloudy". (Reuters 05:24 PM ET 01/21/98)>> There has been so much negative spin put on the Asian financial situation that people tend to overlook the positives for the US economy. Interest rates are way down and show few signs of changing direction. Talk of Fed tightening has now changed to "When will they loosen?". Business benefits by the cheaper cost of capital which encourages expansion and goes straight to the bottom line. Home buyers are refinancing morgages and saving a lot of money. They will either be spending it or investing it, both scenarios being good for equities. Flight to quality from foreign investors to our markets is also a plus. Having said that, I think the latest "bimbo eruption" at the White House has the potential to damage the markets over the near term. Whatever one thinks of the president, it's the office of the presidency that can't afford to be damaged. Without the perception of strength, Saddam Hussein or some other looney tune may see this as chance to create problems. I hope this is settled quickly. - JB

To: Sonki who wrote (4718)	1/22/1998 3:24:00 AM
From: Flair	Read Replies (3) \| Respond to of 74651

Sonki, Ibexx, and all, We may have a bad day! UK shares seen opening lower amid fresh Asia woes Reuters Story - January 22, 1998 02:42 LONDON, Jan 22 (Reuters) - The UK's FTSE 100 index was seen opening as much as 40 points lower on Thursday, after further Asian market falls and as Microsoft warned that the region's economic woes will hurt this year's results. "Everyone has been far too quick to say the Asia situation has been solved," said one senior equity salesman. "The storm clouds are gathering again...I think there are more (earnings) downgrades to come." A decline on Wall Street was also seen weighing on UK shares, while the S&P 500 March future was trading 9.4 points lower -- suggesting a sharply lower opening in New York today. In Hong Kong, the Hang Seng was down 3.8 percent, while other Asian markets were once again under pressure as the plunging Indonesian rupiah upset the region. Microsoft reported fourth quarter earnings of 85 cents a share, at the top end of analyst expectations, but warned that economic weakness in Asia would hurt results in the year ahead. Its shares -- responding to results released after the market close -- fell $1 in after-hours trading. The Dow ended down 78.72 points or one percent, after being down some 60 points as London closed on Wednesday in the wake of lower-than-expected earnings from IBM.