An interesting calculation.
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.
Yeah. That'll teach that rascaly dollar to fall.
Apparently we're supposed to just snap our fingers and make it go up again?
Did I miss something ? Nowhere is there reference to President Bush by Sarkozy. Is this just more propaganda by the always predictable Telegraph ?
Great news for the world's airlines: Boeing is having a sale!
That will teach them to peg the Yuan.
Is that a joke? They already manufacture in the US so its not like they're solely exposed to the rising Euro.
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?
Not to mention, cause the $ to go even lower.
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.
US Aircraft manufacturers rejoice! Business will be booming here, with Boeing/Spirit, Learjet, Bombardier, Cessna and the like.
just what we need is a democrap u.s. congress and president
to enact new smoot-hawley tariffs.
/s
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.
Is the headline here correct? Is the article from Aug. 2007? Under the European system, 8/11/2007 is November 8 (i.e., tomorrow) not August 11.
Everyone at FR should be forced to read this article. I’m so sick of people, misinformed, that the usd weak is bad for the us economy. Good grief, just read what these strong currency folk think about their “great” situation.
Oh well, this currency thing is so out of hand right now, can’t last much longer. Pretty soon, Canadians will be buying up all of our r/e, the Japanese will buy all of our golf courses, and the Brits will buy all of our Fish and Chips stands. The humanity...
Rove!!!!
You magnificent Bastard!
I read your book’
Mr Sarkozy spared no sensitivities as he launched into a full-blown attack on the Bush Administration. "The dollar cannot remain solely the problem of others. If we are not careful, monetary disarray could morph into economic war. We would all be its victims," he said.Notice this anti-US leftist garbage-wrapper calls this "a full-blown attack on the Bush Administration."
Stephen Jen, an analyst at Morgan Stanley, said the dollar fall had become alarming. "This has been driven so far by Middle Eastern and Asian central banks, but there is a risk that hedge funds will start to join in, and they can be very powerful," he said. "The most dangerous threat is that the yen will snap back and destroy the 'carry trade' before anybody has a chance to unwind positions."I've been seeing topics about the impending collapse of the US economy here on FR, and this has gone on for some time now. There was indeed at least one topic about the inevitable dumping of US securities by the Chinese.
The dollar's dive came after comments by Cheng Siwei, vice-chair of China's Congress, suggesting that Beijing would switch more of its $1,340bn reserves away from US bonds. "The euro is rising and the dollar is weakening, and we can achieve a better match of the two," he said.And of course, there was at least one topic about how the OPEC nations were going to abandon pricing of oil in dollars in favor of Euro pricing -- a change that took place years ago.
Simon Derrick, a strategist at Bank of New York Mellon, said it appeared to be a slip of the tongue: "The last thing the Chinese need now is a rapidly falling dollar. Their inflation is already running at 6.2pc." Mr Derrick said the world was on the cusp of a full-blown currency crisis. "The Fed is caught between a rock and hard place. It can't keep rates high enough to fight inflation because of the sub-prime crisis."The banks, IOW, have supplanted the Fed; or more accurately, the Fed has enough brains not to pull a Hoover.
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.Undoubtedly the article's author buried the lead.
Mr Sarkozy's comments came after the French luxury goods group LVMH said it was moving production to India. Airbus stands to lose €100m in profits for every one cent rise in the euro, a loss of €1.2bn since August.