Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Teri Skogerboe who wrote (15174)	1/30/1998 2:02:00 PM
From: Alice	Read Replies (1) \| Respond to of 70976

This may have already beeen posted. Short numbers for Jan. viwes.com Alice

To: Teri Skogerboe who wrote (15174)	1/30/1998 3:45:00 PM
From: Teri Skogerboe	Read Replies (1) \| Respond to of 70976

All, Few news items below -- U.S. businesses eye reforms in IMF Asia packages By Donna Smith WASHINGTON, Jan 29 (Reuters) - U.S. businesses are likely to back U.S. President Bill Clinton's request for money to help the International Monetary Fund (IMF) bailout for Asia in the hope that that tough reform packages will succeed where trade negotiations have failed. The administration is asking a skeptical Congress to approve about $19 billion of additional money for the IMF to replenish resources drained by multibillion-dollar bailouts for Indonesia, South Korea and Thailand. Business backing could be crucial for the administration, which faces stiff opposition from both the right and the left. "We're not going to oppose this thing," said Andrew Card, president of the American Automobile Manufacturers Association. "I suspect that we will be lobbying to have a responsible level of assistance with the expectation that there will be fundamental change. "The recent economic problems encountered in the countries of Southeast Asia are serious and they do affect the performance of the U.S. economy and the prospects for continued growth," Card told Reuters. At the same time, Card and other U.S. industry representatives worry that bailout money will be used to subsidize some of their biggest competitors. U.S. executives contend they have benefited unfairly from subsidies, sweetheart deals and government-directed bank lending. Auto, computer chip and steel manufacturers expressed early concerns to administration officials about aid money being used to rescue competitors who benefited from the cozy government deals and cushy lending practices that the United States has said contributed to Asia's financial turmoil. Representatives of those industries as well as others are expected to talk about the Asia crisis and Clinton's request for money for the IMF before Congress' House Banking Committee on Tuesday. U.S. Treasury Secretary Robert Rubin and other administration officials are set to testify on Friday. "We really believe that any aid going to South Korea has to be conditioned on structural reform to curb their overexpansion program and that it has to be closely monitored to ensure that they actually follow through with that program," said Julie Nash, spokeswoman for Micron Technology Inc. <MU.N> Micron has been particularly outspoken because it is the only remaining U.S. producer of Dynamic Random Access Memory (DRAM) chips following a huge push by South Korea to become a major exporter of the computer memory chips. "That industry was developed in that country with export in mind," she said. "The government sanctioned and encouraged very large loans. That allowed them to overextend themselves and to overbuild in the industry. So now we have an excess of DRAM which has led to the longest downturn in this industry." The deals worked out in recent months between the IMF and Asia's hardest-hit tiger economies include some banking and market reforms that U.S. businesses hope will help level the playing field. In accepting the IMF aid, the countries involved have admitted they made some mistakes in the past as they pursued rapid economic development and vowed to overhaul their policies. "Trade negotiations have not been very successful in opening up those markets and perhaps it takes this type of crisis to cause that fundamental reform," said one steel industry lobbyist. "We have a vested interest in Asia not falling apart," added Jeff Weir, spokesman for the U.S. Semiconductor Industry Association. "We need to find a balance so proper financial programs get put together that not only allow their economies to continue growing, but also that it does that on a market-based basis so there is more equality of competition." Business representatives say banking and trade policy reforms in the South Korean IMF bailout package and commitments by Indonesian President Suharto to abolish monopolies and cartels and end some of the special trade privileges given family members will help meet some long-standing market access and fair competition concerns. But they say they want to be sure the reform packages are carried out. "I think that industry will support an appropriate funding for the IMF particularly if these other issues fall into place," said Howard Lewis, vice president for economic policy at the National Association of Manufacturers. 19:30 01-29-98 Copyright 1998 Reuters Limited. All rights reserved. ----- RESEARCH ALERT - Semiconductor equipment growth NEW YORK, Jan 29 (Reuters) - Merrill Lynch said on Thursday it lowered its semiconductor equipment growth estimate to a range of zero to five percent in 1998 from a previous estimate of five to 10 percent. Growth in both Taiwan and Japan appears to be coming in weaker than expected, Merrill said. Semiconductor equipment growth in Taiwan is now expected to be flat in 1998, compared with a previous estimated rise of 20 percent, it said. Japanese spending expected to decline 15 percent in terms of U.S. dollars, analyst Robert Stern said in a research note. Korean spending is expected to come down 50 percent. "While it has been clear for some time that the initial effect of the Asian currency crisis was going to be a sharp decline in Korean spending, we are now seeing the effects rolling over to Japan and Taiwan," he said. Loading of Taiwanese front-end fabs for March now appears to be in 40 to 70 percent range, lower than it was several months ago. Announced capital spending budgets by a number of larger American semiconductor equipment producers suggests overall American spending could be up 20 percent in 1998. "But given that the revenue growth of these American companies could be half taht rate we think there is risk that spending budgets are cut during the year," he said. 12:06 01-29-98 Copyright 1998 Reuters Limited. All rights reserved. ---- Semitool <SMTL.O> cuts workforce by 85 jobs KALISPELL, Mont, Jan 29 (Reuters) - Semitool Inc said it will cut its headcount by about six percent, or 85 jobs, which will save it over $2.0 million in operating costs annually. "We have limited visibility concerning the financial impact due to the Asian market crisis. These cost cutting measures are necessary to better align costs with our current order backlog," said Ray Thompson, president and chief executive officer, in a statement. "Until the Asian market picture becomes clearer, we will closely manage costs until the backlog situation improves," he said. 12:22 01-29-98 Copyright 1998 Reuters Limited. All rights reserved. ---- S&P cuts M'bishi Electric short-term rating to A-2 TOKYO, Jan 29 (Reuters) - Standard & Poor's Corp (S&P) said on Thursday it has lowered its short-term rating of Mitsubishi Electric Corp <6503.T> to A-2 from A-1. It said it concurrently lowered short-term ratings of Mitsubishi Electric's related entities, Mitsubishi Electric Finance America Inc and Mitsubishi Electric Finance (U.K.) Plc, to A-2 from A-1. "The rating downgrade reflects significant deterioration in Mitsubishi Electric's earnings brought about by mounting strains on the competitiveness of the company's semiconductor and consumer electronics operations," S&P said in a statement. 22:23 01-28-98 Copyright 1998 Reuters Limited. All rights reserved.