Euro down to $1.29 – implications for Airbus?

Current exchange rate, 1.00 EUR = 1.26135 USD.

When people get scared they always, always move their money to the safest place that exists and that is the United States and federal treasury bonds. Even in the present crisis, when people get scared they come to the US. This is why the pound and euro are currently sinking. The United States offers the safest place to put your cash. FACT! It does not matter if you believe this or not, this is a fact. If the United States goes away, so does the current economic world as we know it today. The US will certainly recover from the excesses of the last few years and thrive. Doubt this, get back to me in three or four years.

Bill
Boston, Massachusetts

I do not doubt that the USD is generally safe or that the US economy will recover in a couple of years. I just said the whole thing won’t be over after 12 month and that – given the severe impact on millions of people – the private spending will not recover for some years to come. It is also dubious if the private spending will reach the level we’ve seen before the crises with many people financing their consume on loans and credit cards.

You are incorrect

When people get scared they always, always move their money to the safest place that exists and that is the United States and federal treasury bonds. Even in the present crisis, when people get scared they come to the US. This is why the pound and euro are currently sinking. The United States offers the safest place to put your cash. FACT! It does not matter if you believe this or not, this is a fact. If the United States goes away, so does the current economic world as we know it today. The US will certainly recover from the excesses of the last few years and thrive. Doubt this, get back to me in three or four years.

Bill
Boston, Massachusetts

How big an impact will this have on Airbus? Are the troubles (at least, those related to the exchange rate) over?

No, the currency is hedged and the company was still earning money. the troubles are generally triggered by exchange rate. And see that Boeing in the mean time is ferrying business outside the USD (probably protected by contracts).

Any serious analyst knows that the USD is strategically in a weak position and will continue to be so after the end of the so-called financial crises. The US economy will be hurt by this crises far more and far longer than the European economy, therefore I think that the Euro will not get anything like parity again.