President Donald Trump said on Monday that China is ready to come back to the negotiating table and the two countries will start talking very seriously.Politicsread more
The escalating trade war between Washington and Beijing dominated discussions at the G-7 gathering in France.Politicsread more
China's state media is putting up a brave front as the country's trade war with the U.S. escalated sharply over the weekend.China Economyread more
The latest round of tariff announcements in the last few days means that by the end of the year, essentially all Chinese goods exported to the U.S. will be subject to duties.China Economyread more
U.S. stock futures surged Monday morning after President Trump said China is ready to come back to the negotiating table following a phone call Sunday and the two countries...Marketsread more
As Washington and Beijing continue to up the ante in their protracted trade fight, the potential of a recession in the U.S. is now "the biggest concern," according to Standard...US Economyread more
Tensions stemming from the U.S.-China trade war escalated sharply over the last few days, with much happening as Asian markets were shut down for the weekend.China Economyread more
Clouding the G-7 gathering, which represents the world's major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.Politicsread more
Neither the U.S. nor China wants to be seen as the party that derailed trade talks, says William Reinsch of Center for Strategic and International Studies.World Economyread more
China said Friday it will be resuming 25% duties on U.S. autos, and a further 5% on auto parts and components.Asia Marketsread more
World leaders, environmental groups and celebrities have publicly decried the vast swaths of forest being destroyed by the fires.World Newsread more
IBM is seeing incremental erosion in its business and needs to turn around its software unit, Sanford B. Bernstein's Toni Sacconaghi said Tuesday, a day after the company reported quarterly sales declined for the 14th-consecutive time.
"Right now the old businesses are winning out per se in terms of pulling down growth rate for the company," he told CNBC's "Squawk on the Street."
He said hardware tends to be cyclical. "Really what we need to see is software stablilizing," he added. "It's been down the last several quarters in constant currency."
Software accounts for about half of IBM's profits, the top-rated hardware analyst noted. The other key issue for investors is pressure on services margins.
Shares of IBM were down about 5½ percent in trading on Tuesday. On Monday, the company posted a bigger-than-expected drop in revenue for the fifth-straight quarter and lowered its full-year profit forecast, due to a strong dollar and the sale of low-margin businesses.
IBM is shifting from making hardware to cloud computing and, like established rivals such as Oracle and Microsoft, is striving to boost Internet-based software and services sales to compete with Salesforce.com and Amazon.com's Web software unit.
Like many traditional tech companies, IBM has an old set of businesses that account for about 70 percent of revenues and are mired in decline, Sacconaghi said. New businesses like data analytics and cloud computer are "growing nicely," he added, but not enough to offset losses.
Earlier Tuesday, FBR Capital Markets' Daniel Ives told CNBC that IBM and other large cap tech companies are in a "quicksand situation" as customers transition to cloud computing, and the only escape may be mergers and acquisitions.
"It really comes down to M&A. If they went big on big data, cybersecurity, cloud that's the only — in our opinion — solution to put fuel in the tank for growth. It's not going to happen organically," FBR's senior analyst told CNBC's "Squawk Box."
According to Ives, IBM and its cohort should consider picking up big data firms like Splunk and Tableau, cybersecurity outfits like Fortinet and CyberArk, and enterprise software companies like Workday and NetSuite.
Big cap tech is "in a horse and buggy in the right lane and all these companies are passing them in the Maseratis and Ferraris in the left lane," Ives said.
He pointed to Dell's announced takeover last week of EMC, the largest in tech tie up ever, saying EMC CEO Joseph M. Tucci would not have had to sell had he made acquisitions sooner.
Ives said the legacy tech companies have become accustomed to blaming their results on currency headwinds, but in the end, earnings come down to core execution and mature products offerings.
Armonk, New York-based IBM gets more than half its revenue from overseas. The average value of the dollar against a basket of currencies in the third quarter was about 17 percent higher than the same quarter last year.
Even adjusted for currency and divestitures, the company's revenue fell 1 percent.
—Reuters contributed to this report.
DISCLOSURE: Neither the analysts, nor their families owns shares of IBM. FBR Capital Markets and Sanford B. Bernstein do not hold a greater than 1 percent share in the stock, and do not provide investment banking services to IBM.