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To: DaveMG who wrote (22035)	1/28/1999 8:55:00 AM
From: DaveMG	Read Replies (1) \| Respond to of 152472

Posted 28/01/99 1:05pm by Tony Smith Qualcomm to drop Eudora? Qualcomm looks set to sell or close its Eudora Internet software division, according to anonymous sources cited on US Web site MacOS Rumors and allegedly confirmed by sources at Apple and Qualcomm. The move ultimately follows Qualcomm's acquisition of utilities specialist Now Software back in November 1997. The company was bought to allow Qualcomm to integrate Now's eponymous contact manager and personal organiser software (it sold off Now's other utilities to Power On Software last year) into the Eudora line of email software. The acquisition, the development of Eudora Planner (as Now's PIM has now become), falling sales of Eudora Pro (Eudora Lite has always been available free of charge) in the face of solid email applications being bundled with the leading Web browsers, and its advertising-funded email-for-life service less popular than those offered by top-ranking portals like NetCenter and Excite, has hit the division's finances hard. No final decision has been made on the Eudora division's future, but Qualcomm -- better known as a telecoms infrastructure company; the fit with Eudora was always a puzzling one -- does appear to be looking either at a sale or simply shutting the division down. ® theregister.co.uk

To: DaveMG who wrote (22035)	1/28/1999 9:08:00 AM
From: DaveMG	Read Replies (3) \| Respond to of 152472

SOUTH KOREA: Hidden dangers of recovery By John Burton in Seoul Optimism that South Korea is recovering from its worst recession in 45 years runs the risk of producing an unwanted side-effect. Analysts worry that the government officials are becoming complacent and may ease pressure on reforms. There are plenty of reasons for Seoul to cheer, and the decision this week by Standard & Poor's to upgrade South Korea to investment grade is one of them. The currency, the won, is growing stronger against the US dollar after losing half its value. Interest rates are sharply down to 3 per cent in real terms. Korea enjoyed a record trade surplus in 1998 and its foreign exchange reserves are bulging after being nearly depleted a year ago. Foreign investors have flocked to the Seoul stock market, which was the world's best performing bourse last year. "The recent surge of stock prices is not a bubble. It is a reflection of investor's optimism about the prospects of real economy," said Lee Kyu-sung, the finance minister. The central bank predicts 1999 growth of 3.2 per cent against a contraction of nearly 6 per cent last year. But the sudden euphoria may be misplaced. "My fear is that little is being done to improve Korea's global competitiveness. The emphasis is still on economies of scale and smokestack industries rather than developing high-tech businesses," said a US investment banker who advises Seoul. There are doubts about the restructuring of the big conglomerates, or chaebol. Although chaebol have agreed to merge troubled businesses in the car, semiconductor and petrochemical sectors, there is still resistance to close surplus factories and reduce bloated workforces. High corporate debt levels are coming down, but that is due more to asset revaluation and rights issues to improve financial statements than selling assets to repay loans. Although Korea attracted $8.8bn (£5.33bn) in direct foreign investments last year as some companies were sold, "my feeling is that the window of opportunity is closing," said a big US investor. The chaebol see little reason to sell assets due to the government's aggressive cuts in interest rates. The expected economic recovery appears to rest on fragile foundations. The government has resorted to easing fiscal and monetary policy to support growth and curb bankruptcies. But industrial production remains weak along with consumer confidence, with growth likely to come from restocking of inventories. Goldman Sachs predicts consumer spending will fall 5.4 per cent in 1999 after dropping by 11.6 per cent last year because of continued worries over job losses and wage cuts. "From a sovereign risk perspective, poor growth prospects argue against upgrading towards investment grade," said Barclays Capital. Unemployment is on the rise to 7.9 per cent and might reach 10 per cent this year as exports falter due to an expected slowdown in the global economy. The spectre of 2m jobless and potential for unrest has been a big reason why the government is reluctant to force job cuts as it concentrates on winning parliamentary elections next year. ft.com