Connect with us

Economy

#Eurozone businesses lost some momentum in June but still strong: PMI

Published

on

Eurozone businesses lost some momentum in June but chalked up their best performance last quarter in over six years, according to surveys that showed companies started the second half of 2017 in rude health, writes Jonathan Cable.

IHS Markit's final composite Purchasing Managers' Index for the eurozone was 56.3 in June, down from May's 56.8 but comfortably beating a flash estimate of 55.7. It has been above the 50 mark that divides growth from contraction since mid-2013."The final headline PMI came in above the earlier flash estimate and consequently signalled only a very slight loss of growth momentum at the end of the second quarter," said Chris Williamson, chief business economist at IHS Markit.

Williamson said the latest readings were indicative of the euro zone economy having grown 0.7% in the second quarter, faster than the 0.5% rate predicted in a Reuters poll last month.

Suggesting the momentum might be regained this month, backlogs of work increased as new business during June came in at the second-fastest rate in over six years. The sub-index nudged up to 56.0 from May's 55.9.

"The dip in the PMI in June certainly doesn't look like the start of a slowdown. The added encouragement to the healthy picture is the broad-based nature of the upturn signalled for economic growth, employment and prices," Williamson said.

Earlier PMIs from the bloc's big four economies of Germany, France, Spain and Italy showed faster growth in the second quarter as a whole.

A PMI covering the bloc's dominant service industry fell to 55.4 from the previous month's 56.3 but was ahead of the 54.7 flash reading.

Suggesting businesses remained confident, they sped up hiring last month. The services employment index rose to 53.9 and has only been higher once - in March - since early 2008.

China

Huawei ban spurs new competition for Ericsson and Nokia

Published

on

The crackdown on China’s largest technology company has given startups such as Altiostar Networks Inc. and new entrants including Qualcomm Inc. a rare opportunity to grab a slice of the $35 billion the telecom industry spends each year on this crucial part of mobile phone networks.

“This could break up that tech vendor lock-in that’s been around for decades,” said Andre Fuetsch, chief technology officer of network services at AT&T Inc., the third largest U.S. wireless carrier. “It’s about how do you create a much more competitive, innovative ecosystem.”

Technology gets political

Position on including equipment from China’s Huawei in 5G mobile networks, as of 15 July, 2020

Source: Bloomberg

Base stations are the heart of cellular networks, powering millions of antennas that perch on cell towers and city rooftops all over the world. Until recently, these boxes were a proprietary combination of processors and software that had to be purchased all at once. Huawei, Ericsson and Nokia account for three quarters of this market, which is worth as much as $35 billion a year, according to researcher Dell’Oro Group.

Open radio access network, or O-RAN, changes this by creating an open standard for base station design and ensuring all the software and components work well together -- no matter who is supplying the ingredients.

This is a potentially radical shift. When telecom giants such as AT&T and China Mobile Ltd. want to expand their network they usually have to call their existing supplier and order more of the same because a box from Nokia won’t work with one from Ericsson. The new technology lets wireless carriers mix and match more easily.

The initiative also means that new suppliers can succeed by focusing on one or two components, or a single piece of software, rather than spending lots of time and money building a whole base station from the ground up.

O-RAN gear has been used sparingly since an industry alliance was formed to promote the technology in 2018. But when the U.S. toughened its stance against Huawei last year and encouraged other countries to crack down, interest in O-RAN adoption increased. The Chinese tech giant is a low-cost provider. Now it’s unavailable in some markets, carriers are more willing to look at alternative suppliers embracing the more flexible O-RAN approach.

“Increased geopolitical uncertainty is helping them to get an invite to the table they would not normally have had,” Dell’Oro Group analyst Stefan Pongratz said. “Multiple vendors, not just in Europe but across the world, are basically reassessing their exposure to Huawei.”

How Huawei landed at the centre of global tech tussle: QuickTake

Open standard base stations will generate sales of about $5 billion in the next five years, more than originally predicted, according to Dell’Oro.

Ericsson questions the performance and cost-efficiency of current O-RAN offerings. But the telecom companies, who decide where the money is spent, aren’t being shy about telling incumbent providers to get on board or risk being left behind.

“We’ve been candid with them: This is the architecture that the operator community is pursuing,” said Adam Koeppe, who oversees technology strategy, architecture and planning at Verizon Communications Inc., the biggest U.S. wireless carrier.

The list of companies vying to fill the gap left by Huawei is a mixture of some of the oldest names in technology and newcomers. Qualcomm, Intel Corp.Hewlett Packard EnterpriseDell Technologies Inc.Cisco Systems Inc.Fujitsu Ltd. and NEC Corp. are offering various parts of the new base station technology. Startups such as Altiostar, Airspan Networks and Mavenir Systems are trying to carve out niches, too.

O-RAN proponents point to the success of Rakuten Inc., a Japanese e-commerce provider that has used the technology to break into mobile phone services. The company began 4G wireless service in April and is upgrading to 5G now, using O-RAN suppliers including NEC, Qualcomm, Intel, Altiostar and Airspan. Rakuten said using this more open approach has cut capital expenditure by 40% and reduced operating costs 30%.

Dish Network Corp. is building a 5G wireless network in the U.S. with help from Altiostar. New projects like this are great, but the real opportunity is with operators that are shifting their existing networks to O-RAN, according to Thierry Maupilé, Altiostar’s executive vice president of strategy and product management. The Tewksbury, Massachusetts-based company has raised more than $300 million from investors such as Rakuten, Qualcomm and Cisco.

Why 5G mobile is arriving with a subplot of espionage: QuickTake

O-RAN is part of a broader push to make all kinds of computer networks more flexible and easy to control. By standardizing hardware and using more software in centralized data centers, companies can run networks more cheaply, while fixing and upgrading them more easily. 5G will need this flexibility to work well.

For AT&T, the new approach has already started to help. The company has introduced Samsung equipment based on O-RAN in areas where it had previously been limited to Ericsson gear, AT&T’s Fuetsch said.

Nokia expects to have a full range of O-RAN offerings available in 2021. Some of the final standards aren’t yet set and they need to be completed and tested which will take time, according to Sandro Tavares, global head of marketing.

“O-RAN is supported by more than 20 major operators around the world, so it is pretty clear that there is a strong push for it to happen,” he said. “This is a big move for our industry, and it is clear for the main players that we should not be cutting corners in this process.”

Continue Reading

coronavirus

Ireland tightens Dublin COVID-19 restrictions as cases surge

Published

on

By

The Irish government on Friday (18 September) announced strict new COVID-19 restrictions for the capital Dublin, banning indoor restaurant dining and advising against all non-essential travel, after a surge in cases in recent days. Ireland, which was one of the slowest countries in Europe to emerge from lockdown, has seen average daily case numbers roughly double in the past two weeks and significant increases in those being treated for the virus in hospitals, writes Conor Humphries.

“Here in the capital, despite people’s best efforts over recent weeks, we are in a very dangerous place,” Prime Minister Micheal Martin said in a televised address to the country, announcing the restrictions.

“Without further urgent and decisive action, there is a very real threat that Dublin could return to the worst days of this crisis.” The measures, which include a ban on indoor events, will last for three weeks, he said. Ireland had the 17th highest COVID-19 infection rate out of 31 European countries monitored by the European Centre for Disease Control on Friday, with 57.4 cases per 100,000 people in the past 14 days.

The government reported three deaths from the virus on Friday, bringing the total toll to 1,792. Countries across Europe, including Britain, Greece and Denmark, on Friday announced new restrictions to curb surging coronavirus infections in some of their largest cities. Ireland on Thursday tightened its COVID-19 travel restrictions by imposing quarantines on travellers from major holiday markets Italy and Greece.

Continue Reading

Belarus

Belarus warns EU against inviting Lukashenko's rival to meeting

Published

on

By

The foreign ministry in Belarus said on Saturday (19 September) that it saw the possible participation of opposition politician Sviatlana Tsikhanouskaya in an EU ministerial meeting as an interference in domestic affairs, the Belta state news agency reported, writes Maria Tsvetkova.

Tsikhanouskaya has led the biggest challenge to President Alexander Lukashenko’s 26-year rule in Belarus.

The foreign ministry said it had informed European diplomats about its view.

Russian state news agencies reported earlier that Tsikhanouskaya is expected to take part in a meeting of European foreign ministers next week.

Continue Reading
Advertisement

Facebook

Twitter

Trending