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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (214)	11/17/1998 10:12:00 PM
From: lebo	Read Replies (1) \| Respond to of 3891

From Business Week, Nov 16 Alcatel's goal is to build new machines that can link the entire planet to the Web. Alcatel's devices would be phones with screens. From a technology point of view, it is well-positioned to build Web-surfing tools. The plan is to supplement their European technology arsenal with a handful of Silicon Valley acquisitions. My question to the experts: Would data-networking cos be the answer (XYLN, FORE, NN) Any comments

To: Steve Fancy who wrote (214)	11/18/1998 6:26:00 PM
From: bertrand bidaud	Respond to of 3891

Steve Interest rate cut in France? This is the big question and the core of the argument between central banhers and governments. French and German government, as well as a few others, have said that there is room for lower interest rates. The bankers say that before German and France lower further, others should join. Since in December, all countries participating in Euro should have similar rates, further reduction makes it difficult fo those with higher rates. Before the end of the year, cut is extremely unlikely for this reason. After? I guess it will depend how strongly they (bankers) view things. In Europe the economy is not too bad. Slowing done, but better than it has been for years. Moreover, the inetest rates are significantly lower than in USalready. Last, part of 'Euroland', like Ireland, does not need, and want reduction due to overheating possibilities. The bankers have to initiate something with no benchmark. From Januaray onwards, it is unchartered water. My personnal guess, is that there won't be any cut except futher deterioration of the economy. We do not hope for it then... Impact of S cut? well, for an export company like ALA, quite straightforward, negative. On the short term, there is some arbitrage gain, but if the US $ goes down against FF/DM, Alcatel might be in difficulty. How low is low? 5.5 ff/$ is getting difficult Ibelieve. It has been for a year at 6FF/$ . Good luck (I am no economist, so anyone can add value to all these personal comments)