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Cisco's mea culpa

posted 5 Apr 2011, 17:07 by Mpelembe Admin
Summary of business headlines: Cisco CEO vows to restore "flawed" company in email; Budget battle rages on in Washington; Federal Reserve minutes show continued split; Stocks very little changed.
USA-USCLOSE - Cisco Systems has "been slow to make decisions", has " lost the accountability that has been a hallmark" and has "lost some of the credibility that is foundational."

Those are the sobering words Cisco CEO John Chambers wrote in an email to employees, first obtained exclusively by Reuters Breakingviews, admitting the technology bellwether has lost its way.

Chambers called this "unacceptable" and vowed to shake things up.

Shares of Cisco were up on Tuesday, but have lost one-third of their value over the past 52-weeks thanks to two disappointing quarters.

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The budget battle rages on in Washington as a possible government shutdown approaches this weekend.

Republican chair of the House budget committee - Paul Ryan.

SOUNDBITE:HOUSE BUDGET CHAIRMAN PAUL RYAN (REPUBLICAN OF WISCONSIN), HOLDING REPUBLICAN BUDGET PROPOSAL, (ENGLISH) SAYING:

"This is the path to prosperity. This is the budget that we are putting forward today. This represents our choice for our country's future, and it's our commitment to the American people."

Talks at the White House between Republican and Democratic leaders failed to produce a deal on Tuesday .

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The Federal Reserve is split on what to do next and when.

Minutes from the last meeting show some policymakers thought easy monetary policy may have to be extended until 2012, while others believed the Fed should hike rates by the end of the year.

At the same time, some policymakers thought the bank should end its $600 billion bond buying program early - if the economic expansion gathers more steam - or if inflation heats up.

The Fed's next meeting is at the end of the month.

China hiked interest rates for the fourth time since October on Tuesday and the European Central Bank is expected to raise interest rates later this week.

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On Wall Street: stocks were little changed for the second session in a row, with volume stuck on the light side.

And stocks across Europe barely moved as well despite another downgrade of Portugal debt.

Conway Gittens, Reuters

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