Sarkozy, euro vs $, Airbus Costs

Sarkozy Says Dollar Drop Risks Triggering Trade War

Excerpt:

Sarkozy said yesterday that Toulouse, France-based Airbus SAS, the world's biggest planemaker, loses about 1 billion euros ($1.5 billion) for every 10-cent increase against the dollar.


``Those who admire the nation that has built the world's greatest economy and has never ceased trying to persuade the world of the advantages of free trade expect her to be the first to promote fair exchange rates,'' Sarkozy said. He repeated his concern that the Chinese yuan is unfairly undervalued.


Comment: Follow on to early CFG post: "... the drop in the dollar makes the cost of United State goods and services less expensive to consumers in other countries and the cost of other countries' goods and services more expensive to us in the United States. Thus exports should be increasing in coming days and imports decreasing." Sarkozy's concern is that Airbus sales to US carriers will tank!