Wednesday, July 11, 2007

If I had to distill my policy desires down to their crudest essence (and I have) they can be summed up as "Dead Terrorists and Tax Cuts."

So. Tax cuts, check. Dead terrorists, check. Musharraf in '08!


Blogger Tax Shelter said...

EADS Chief Executive Louis Gallois warned in an interview published yesterday in the financial magazine Challenges if the dollar sinks more over time, the airplane maker would have to consider if it can continue to make planes in Europe.

He said each 10 U.S. cents the euro rises against the dollar shaves €1 billion from the company's operating result.

Airbus's chief rival, Boeing Co., has 80% of its costs in dollars, while 50% of the costs born by Airbus parent EADS are in euros, according to Mr. Gallois. He said the company's Power8 restructuring program is based on an exchange rate of one euro to $1.35.

Could the exchange rate be the real story behind "the Greatest Business Rivalry on Earth"?

7:33 AM  
Blogger Donny Baseball said...

Yes, it is a big part of it. Two interesting points. 1) A big group from I think Dubai wants to buy into EADS and shake things up, principally getting Airbus to abandon their devotion to European manufacturing. 2) If you watch that schmaltzy Boeing-fest that I linked to, you see that the Dreamliner is built essentially all over the world. The manufacturing system appears to be one ginormous (that's a word, you can look it up!) currency hedge.

It all goes back to what I have said about Airbus. It is a slave to statism and that is its structural flaw. Sure it can and will design, build and sell planes, but it ain't a profit making operation and one day it subsidizers will say no mas.

9:18 AM  

Post a Comment

<< Home