There's so much momentum coming early into this quarter that an excellent quarter is just baked in the cake.

Another quarter-point rate hike is baked in the cake. But we are near the end.

We're definitely going to see a very strong first quarter. It looked like consumers were hibernating in December, and all they needed was an excuse to go on a spending spree. The weather provided that.

The overall momentum in construction remains solid. We expect this pattern to continue, with public and commercial construction taking the leadership baton in 2006 as housing starts ease back moderately.

Alcatel has continued to deliver strong quarter-over-quarter results for its IP portfolio, translating into excellent momentum in market share. According to our data, this is the fastest ramp in market share in routing history, which is remarkable. The service provider edge is a very dynamic space. The growth is greatest in the edge because this is where all the service innovation is occurring in order to satisfy the demand for new applications like IPTV. This is why Alcatel's service routing IP portfolio has hit such a sweet spot.

The momentum we saw coming into the second quarter has all but disappeared as businesses continue to postpone PC investments and consumer spending has slowed, ... Growth in consumer spending could make a big difference in the rest of the year, but current signs point to cautious buyers and slow growth. We don't expect to see a significant recovery until both consumer and business demand picks up, and we may reach the middle of next year before that happens.