Airbus And EADS Soar With Jumbo-Sized Profits

lightsaber · Sun Mar 13, 2005 2:11 pm

Quoting A380900 (Reply 15):
The dollar being unchallenged is a key aspect of American economic health.

Actually, its been rated as a 20% discount on imported goods. Will a weaker dollar hurt the US? Yes. Crush us and open the borders? No... Personally I believe the dollar was previously overvalued and is correcting to where it should be.

Quoting B2707SST (Reply 46):
Last time I checked, the US' openness ratio ([imports + exports] / GDP) is about 0.15.

B2707SST, good stats. Thanks. Umm... I wouldn't compare us to Japan... They've been a breath away from a sovereign default for a decade. But let me make it clear I appreciated your posts; double the compliments for those posts with references to statistics.

Quoting B2707SST (Reply 40):

Most of these central banks, especially those in Asia, are holding dollars to keep their currencies artificially weak versus the dollar because their economies are export-driven.

So true. When we tried to get china to unlock their currency they were 1/2 a step away from declaring we'd attacked them*... A380900 you'll get your wish for a weaker dollar as eventually the currencies will align as trade flows dictate. The Renminbi is becoming too large a currency to be artificially locked to the dollar. When its unlocked (or just allowed to rise vs. the dollar) Boeings will become cheaper for the Chinese... California wine will become even less expensive for the British... etc. etc. etc.

So what does this mean For Airbus (this thread's topic)? Probably as B2707SST noted more manufacturing in the USA. Maybe Honeywell or Parker-Hannifin will get more subcontracts. Perhabs BF goodrich will get a larger share too. I doubt final assembly will make it the USA (too politically touchy). And yes, obviously lots of work will also go to China and other low cost producers.

Lightsaber

*ok, I exagerate to make a point.

atmx2000 · Sun Mar 13, 2005 2:40 pm

Quoting Lightsaber (Reply 50):
Actually, its been rated as a 20% discount on imported goods. Will a weaker dollar hurt the US? Yes. Crush us and open the borders? No... Personally I believe the dollar was previously overvalued and is correcting to where it should be.

The strong dollar further aggravated the natural structural bias towards imports in the US. The fact that the federal government derives much of its revenue from high production side taxes like personal and corporate income taxes and high employee and employer payroll taxes and little revenue from consumption taxes has makes a lot of imports cheaper than they ought to be.

A strong dollar is poison to manufacturers and exporters (and their workers) and is an opiate for retailers and consumers and people who are otherwise not exposed to competition from international trade. It takes a strong economy to withstand the deleterious effects of a strong currency for an extended period of time. The effects on the US economy took a few years to show up, because it was partially masked by tech boom/bubble.

a380900 · Sun Mar 13, 2005 2:47 pm

Quoting Sllevin (Reply 48):
The dollar has dropped for precisely one reason: US interest rates are extremely low

Interest rate in the US are higher than in the EU for any maturity. The dollar is falling despite this.

atmx2000 · Sun Mar 13, 2005 2:49 pm

Quoting Lightsaber (Reply 50):
Quoting B2707SST (Reply 46):
Last time I checked, the US' openness ratio ([imports + exports] / GDP) is about 0.15.

B2707SST, good stats.

I think it is more like .25, because if I remember correctly imports are like $1.5 trillion and exports are around $900 billion.

Also it should be noted that many sectors of the economy are involved with the movement and sale of those imports, so they will be negatively impacted if imports become more expensive.

lightsaber · Sun Mar 13, 2005 3:03 pm

Quoting Atmx2000 (Reply 53):
Also it should be noted that many sectors of the economy are involved with the movement and sale of those imports, so they will be negatively impacted if imports become more expensive.

Very true. I live in LA where quite a few of my college friends are involved in the import export business and would be hurt by a decline. As to 0.15 to 0.25... I don't know. But the correction is going to come. If its fast it will be painful. But I believe long term for aerospace manufacturing and engineering its only a benefit.

Lightsaber

atmx2000 · Sun Mar 13, 2005 3:21 pm

Quoting Lightsaber (Reply 54):
If its fast it will be painful. But I believe long term for aerospace manufacturing and engineering its only a benefit.

It will only be painful if the Chinese sharply increase the value of their currency. However, I can't help but wonder if they could tolerate a sharp increase without a drastic impact on employment in manufacturing.

Anyway it should be a benefit for most manufacturing sectors, and it will also boost the profits of American companies with significant foreign revenue even if they don't manufacture in the US. Unfortunately they won't repatriate those profits due to the high taxation rate for repatriated profits. That would slow down the descent of the dollar while probably increasing investment in domestic manufacturing.

[Edited 2005-03-13 07:23:40]

AJet · Sun Mar 13, 2005 8:49 pm

To our American friends on this site, I want to tell you I'm not to glad someone like A380900 speaks in the name of France.
Though I don't agree with everything happening in the US, I think every discussion should be respectful. Hate has no place on this site.
And by the way, 50% of France dislike the 35-hour law. Coming back home every night at 9pm, I really don't understand how some people could feel exhausted with the former 39-hour week.

Cheers

kc135topboom · Sun Mar 13, 2005 8:51 pm

Well, I think A380900 has declaired war on the US. Wow, it's a good thing the rest of France isn't joining him.

He also seems to think President Bush is some kind of mean guy.

Did he vote for President Charc? Now there's a person who can answer some of the "oil for food" questions the UN is being asked?

BTW, congradualtions to EADS and Boeing.

Keep 'em flying

bully707 · Sun Mar 13, 2005 9:39 pm

Quoting KC135TopBoom (Reply 57):
Well, I think A380900 has declaired war on the US. Wow, it's a good thing the rest of France isn't joining him.........
BTW, congradualtions to EADS and Boeing.

Keep 'em flying

Strange, why do users have to start p*ssingcontests about politics???
Wasn't the thread about something completely different??? Wink

Face it...WE can't change it to our liking!!!

Grow up!!!

BTW...welcome to R-U list, KC135TopBoom !!!

Godspeed

Bully

sebolino · Sun Mar 13, 2005 9:48 pm

And by the way, 50% of France dislike the 35-hour law. Coming back home every night at 9pm, I really don't understand how some people could feel exhausted with the former 39-hour week.

It has absolutely nothing to do with the thread, but I want to answer on that one.

First the 50 % figure seems exagerated to me. A large part of right-wing people are very satisfied with the 35 hours, i don't speak about left wing people ...
It is not adapted to some jobs, but 40 hours was not more adapted, the debate is not the right one here.
The real problem is for people who are paid per hour, and who lost money in it (contradicting in their cases the argument of labour cost by the way ... things are not that simple).

And more of that, the week is for most people still 39 hours long, they have more holidays in exchange, and higher expectations from their employers.

Another subject:

Did he vote for President Charc? Now there's a person who can answer some of the "oil for food" questions the UN is being asked?

I still don't know what you are told in the US about the oil-for-food program, but I repeat again that the US were the first to benefit of that program, so please stop to put all your anger blindly on France, that's ridiculous.

Charc ? You mean Shark or Chirac ? Smile

co7772wuh · Sun Mar 13, 2005 10:44 pm

Quoting Sebolino (Reply 59):
I still don't know what you are told in the US about the oil-for-food program, but I repeat again that the US were the first to benefit of that program, so please stop to put all your anger blindly on France, that's ridiculous.

That's Boloney !

US manufacturers only made about 250 million in the Oil-For-Food program !

France made almost 3 Billion in the scandal , more than any other country involved !

The governments " one's in the UN security Counsel " that were against the war , had the most to loose in terms of money if the scandal stopped and even more to loose if the Irqai people found the documents regarding the scandal ," which they have " connecting Saddam with government officials who were making out like fat Rats , Saddam was building his Palases and spreading Terrorism while the Iraqi people died by the 100 of thousands! Over a million Iraqi people died during the scandal !

The UN is a joke !

a380900 · Mon Mar 14, 2005 12:11 am

Sebolino,

There is a campaign going on here in the US media about the Oil for food program. The Murdoch Empire is leading the charge. The story line is that every country who opposed the Iraq war is awfully corrupt and countries which supported it are as clean as can be.
It seems strange because the US could have vetoed any decision about this program and that I think it was a major beneficiary. But don't expect these people to think. So don't be surprised if you meet a US right winger and he tells you that France should be ashamed and blah blah blah. You should see what these people read and watch all day... Really pretty pathetic.

Some are just swallowing the lies, others are consenting to being lied to.

Overall, Bush voters are a little bit like a beaten wife defending her violent husband.

Bush is weakening the US like nobody before and like nobody could have done from the outside.

LRGT · Mon Mar 14, 2005 1:36 am

Quoting Scbriml (Reply 1):
A380900, you're absolutely right. Airbus either gives away its planes, or bribes the airlines to buy them. I expect their profit is just an accounting trick! sarcastic

That is the way they sell, but if it works don't fix it!

...albeit their earnings would most likely be much different (lower!) under US GAAP!

co7772wuh · Mon Mar 14, 2005 1:41 am

Quoting A380900 (Reply 61):
There is a campaign going on here in the US media about the Oil for food program. The Murdoch Empire is leading the charge.

The UN oil for food scandal has also been on CNN quite regularly , as well as many other networks !!!

Fox was just 1st in seeing the significance of it , in regards to the corruption involving prided officials and the death and suffering .

You have just proved that you are not someone from France but a frustrated extremist who can't handle the truth . irked

Come on guy , get over it ! You have no idea how good you have it here in the US !

As to Airbus . Congras to them ! They have earned it !This intense competition between AB and BC will only mean better ,more advanced A/C for all to fly in . Lucky us ! smirk

gearup · Mon Mar 14, 2005 1:53 am

LOT767-300ER,

Quoting LOT767-300ER (Reply 10):
..jesus christ your statement makes squat sense.

A gentle reminder, some people, in this case, myself, find it offensive when The Lord's Name is used in the manner in which you used it in your post. I would suppose you meant no harm but you need to realise that it is not appropriate to use that kind of language. I did not suggest post deletion because I do not believe to meant to offend but I would ask that you be careful of your choice of language.
With Respect,

GU

chgoflyer · Mon Mar 14, 2005 3:06 am

A380900 Ive cut a pasted an article for you to search and read.. your profile says your in NY. Why are you in the U.S. ?

> EUROPE - THY NAME IS COWARDICE
> (Commentary by Mathias Dapfner CEO, Axel Springer, AG)

Enjoy!

chgoflyer

Airbus And EADS Soar With Jumbo-Sized Profits

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