A warning on the global economy you should heed

Cisco CEO John Chambers is a forex trader’s best friend. He has great insight on the global economy and a long track record of honesty. When he talks, listen:

“Last quarter, I described a continued slow recovery,” said John Chambers, Cisco’s chief executive. “This recovery is more mixed and inconsistent than others I’ve seen.”

He announced 4,000 job cuts, saying growth had fallen short of what he thought a few months ago:

“What we see is slow steady improvement, but not at the rate that we want,” Mr Chambers said. “We have to very quickly reallocate resources.”

Share prices are down around 10% in after-hours trading. What he’s saying doesn’t fit with the latest economic data but Cisco has access to the leading edge of the economy and Chambers has been right many times.  I’m going to take a night to digest it and look for more comments but what he is saying is making me reconsider some things I believed about the global economy.

Cisco CEO john chambers August 13 2013

Is Chambers saying to buy JPY?

Author: Adam Button

Adam Button is the editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes deeply in the value of knowing every tidbit of news. He has a background in journalism and was formerly the head of the markets team at the Canadian Economic Press. He is a graduate of Ryerson University and completed Level 1 of the CFA program. Adam lives in Montreal, follow him on Twitter: @FX_Button.

7 Comments

  1. He is always correct, that was the reasons I have been saying that FED won’t taper in Sept. Maybe Nov and definitely, in December if Congress doesn’t force the Admin to cut more on the budget!

  2. Sell the dollars Dude :-)

  3. Hmm…I do alot of business with cisco..and I can tell u that they have also been losing alot of market share the last few years….to put it frankly..they r no longer the apple of networking equipment….his problems r.more to do with his business.

  4. he s not talking of networking scrap he s talking of global economy , different matter isn t it? :-)

  5. cisco kid says it like it is

  6. The “recovery” is just a disguise, affording those who over leveraged and caused the GFC enough time to deleverage.

    Adam / Eamonn – can I ask a question? With US inflation low and unemployment relatively high, ater pumping $85B/mth into the economy…..where is the money going?

    Show me the money!

  7. I think the regional details are more interesting with Asia a particular area of concern with Japan a particular worry… Not sure what he said about Europe but I think he was relatively neutral (he will be on Bloomberg TV today)

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