Sarkozy fears 'economic war’ as dollar slides (Aug. 2007)

Telegraph (UK) ^ | 1:13am GMT 08/11/2007 | Ambrose Evans-Pritchard

[DeaconBenjamin]

Airbus stands to lose €100m in profits for every one cent rise in the euro, a loss of €1.2bn since August.

An interesting calculation.

[Perdogg]

All the EC central bank has to do is to lower its’ interest rate several hundred bases point.

This would at least halt the slide.

[ari-freedom]

“A German-led group of bank governors is pressing for a rate rise before inflation gets out of hand.”

see that’s the problem

[RockinRight]

angry protests from industrial leaders in France and Italy.

Yeah. That'll teach that rascaly dollar to fall.

Apparently we're supposed to just snap our fingers and make it go up again?

[prov1813man]

"Mr Sarkozy spared no sensitivities as he launched into a full-blown attack on the Bush Administration"

Did I miss something ? Nowhere is there reference to President Bush by Sarkozy. Is this just more propaganda by the always predictable Telegraph ?

[SergeiRachmaninov]

Airbus stands to lose €100m in profits for every one cent rise in the euro, a loss of €1.2bn since August.

Great news for the world's airlines: Boeing is having a sale!

[neodad]

The last thing the Chinese need now is a rapidly falling dollar

That will teach them to peg the Yuan.

[DeaconBenjamin]

In other words, it’s not a Yuan way street?

[Perdogg]

I think in short run, a falling dollar is not problematic given our macroeconomical situation. I do believe there is a floor.

The thing that concerns me is whether this dollar dumping is a prelude to something really bad.

[Citizen of the Savage Nation]

Mr Sarkozy's comments came after the French luxury goods group LVMH said it was moving production to India.

Is that a joke? They already manufacture in the US so its not like they're solely exposed to the rising Euro.

[Citizen of the Savage Nation]

Airbus stands to lose €100m in profits for every one cent rise in the euro, a loss of €1.2bn since August.

And this, is also a joke? If that's the case, then why is Airbus STILL relying so heavily on discounts to win orders (see British Airways/A380 rumors of >50% discounts) when they should be shoring up profits instead?

[Citizen of the Savage Nation]

Mr Sarkozy's words were undoubtedly directed at the European Central Bank before today's interest rate meeting. A German-led group of bank governors is pressing for a rate rise before inflation gets out of hand. Any such move would set off a political storm in Europe.

Not to mention, cause the $ to go even lower.

[Jackson Brown]

Airbus stands to lose €100m in profits for every one cent rise in the euro, a loss of €1.2bn since August.

Telegraph reporter gets it wrong — many financial publications show every 10 cent rise = €100m loss, not one cent rise.

ALL of Europe and Canada — with combined losses in the 100s of billions due to weak dollar! As for the US, in the short term, it is helping. look at break down in last GDP report. The US GDP growth almost doubled just because of improved US exports...also, balance of payments deficit dropped big time.

[Xenophon450]

US Aircraft manufacturers rejoice! Business will be booming here, with Boeing/Spirit, Learjet, Bombardier, Cessna and the like.

[DeaconBenjamin]

They make up their losses with volume?

[DeaconBenjamin]

Telegraph reporter gets it wrong — many financial publications show every 10 cent rise = €100m loss, not one cent rise.

Are these estimated annual losses? Monthly losses? Enquiring minds wonder.

[DeaconBenjamin]

Bombadier is not Canadian?

[ken21]

just what we need is a democrap u.s. congress and president

to enact new smoot-hawley tariffs.

/s

[Turbopilot]

It’s pitiful that the French president has to say what our President doesn’t seem to see.

But apparently making a (fairly unsuccessful) effort to bail out crooks in the mortgage industry is more important to our Republican “leadership” than is saving the American economy as a whole. At least these days everyone has credit and debit cards; no one will have to carry literal wheelbarrows of cash to buy groceries.

[Xenophon450]

Not quite sure although I believe they have a plant here, although you may be correct.