Aces High Bulletin Board
General Forums => The O' Club => Topic started by: Rolex on November 26, 2007, 03:00:31 AM
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Well, China ordered 160 planes from Airbus for about €10 billion and ordered another €8 billion of nuclear reactors from France's Areva. China will certainly be shifting more to Euros instead of US$.
It's events like these, that outwardly seem insignificant in the overall economy, that can trigger significant runs from the US$. In addition, China Investment Corporation is actively recruiting people from around the world to begin shifting its $1.4 trillion of foreign reserve investments away from US Treasuries and into alternate risk, global markets.
Markets will start reacting to this stories today.
I'm into big bear mode now on the US economy for next year - it could be the worst in our lifetime. I'm still convinced that the economy will be issue number one, come election time. Not one of the current presidential candidates is equipped to handle it, except Ron Paul. The rest will want to spend their way out, but no amount of additional deficit spending will fix anything. It will only deepen and extend the recession because it's more of the same foolish cosmetic growth that is part of the cause. This recession will be a different animal that will require concrete, systemic changes.
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There could be some gnashing of teeth in Toulouse too.
Airbus' agreement to assemble planes in China was seen as part of a long-term strategy to win a greater share of the Chinese market that for years was dominated by Boeing. Its final assembly line in the Chinese city of Tianjian is due to deliver its first aircraft in early 2009. The plant is expected to be able to produce four A320s a month by 2011 and a total of about 300 A320 planes by 2016.
Seems there might be more Yuans than Euros in this deal.
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Did they give the Chinese assembly plants the wing or will it be shipped intact to China?
Does anybody know?
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Airbus website (http://www.airbus.com/en/worldwide/airbus_in_china.html)
Airbus also seeks to form new industrial partnerships whenever possible. For example, the A318 is the first new Airbus aircraft to have been developed with the help of a team of Chinese engineers and the specially commissioned roll-on, roll-off ship that transports A380 components was built at the Jinling shipyard. In addition, Airbus has several major technology transfer programmes underway, including one that will enable the complete wing of the A320 Family to be manufactured in China and another that will see up to 200 Chinese engineers employed at an Airbus engineering centre in the region by 2008.
'course Boeing has worldwide supply chain too...
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We should SLAM the door on communist chinese products and buy from Free China (Taiwan) or Japan for products we don't make here.
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Considering that Airbus is in dire straights from a profit-making point of view (negative 1.46 billion 3rd q. loss :eek: ) that's good news for Airbus. The order may have pushed Airbus past Boeing for total orders this year (it has for the time being, but the year is not over yet). Unfortunately it means nothing for the workers of EADS due to the assembly line in China and benefits only those profits for the corp execs at Airbus.
One thing that is worrisome to me is the fact that anything I buy that has "made in China" has a quality factor equivelent to the Japanese stuff post-WW2. Hopefully China will work on these quality issues as Japan finally did, and bring the QA factor up, after all, these are people flying on these aircraft. :confused:
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Whatever you do do NOT lick the wings of the Airbuses or lick your fingers if you have touched any parts made in China.
Just a heads up.
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well that just means more dead chinese in the near future as those second rate aircraft come apart in flight.
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Originally posted by Rolex
Well, China ordered 160 planes from Airbus for about €10 billion and ordered another €8 billion of nuclear reactors from France's Areva. China will certainly be shifting more to Euros instead of US$.
It's events like these, that outwardly seem insignificant in the overall economy, that can trigger significant runs from the US$. In addition, China Investment Corporation is actively recruiting people from around the world to begin shifting its $1.4 trillion of foreign reserve investments away from US Treasuries and into alternate risk, global markets.
Markets will start reacting to this stories today.
I'm into big bear mode now on the US economy for next year - it could be the worst in our lifetime. I'm still convinced that the economy will be issue number one, come election time. Not one of the current presidential candidates is equipped to handle it, except Ron Paul. The rest will want to spend their way out, but no amount of additional deficit spending will fix anything. It will only deepen and extend the recession because it's more of the same foolish cosmetic growth that is part of the cause. This recession will be a different animal that will require concrete, systemic changes.
It's what happens when our govt makes it easy to outsource everything to foreign countries. Then fiances our budget with loans from other countries. This is what guys like me have been crying about for a very long time, when watching Bush run our country into the ground.
No business in the world can continue to spend more than it makes over and over again and have any chance in hell of continuing to stay afloat. We are only just now starting to see the begining of what's to come.
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Originally posted by storch
well that just means more dead chinese in the near future as those second rate aircraft come apart in flight.
Or on the ground:D
(http://img219.imageshack.us/img219/7984/oppsfv9.jpg)
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Originally posted by Curval
Whatever you do do NOT lick the wings of the Airbuses or lick your fingers if you have touched any parts made in China.
Just a heads up.
:rofl
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Originally posted by Slash27
Or on the ground:D
(http://img219.imageshack.us/img219/7984/oppsfv9.jpg)
I see the problem there.. The pilot swerved to miss Santa Clause whom is there standing by the tail.
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Killing Santa is not good PR.:D
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Originally posted by Mr No Name
We should SLAM the door on communist chinese products and buy from Free China (Taiwan) or Japan for products we don't make here.
That wouldn't achieve anything except up the cost to you -- all the Taiwanese & Japanese stuff is made by the communist Chinese too.
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its a common Airbus practice to give away airplanes at the end of the year, just to out produce Boeing. AB wont make any money on that deal.
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That's all OK.
I'm not sure if many folks would understand the significance of giving the Chinese the wing, it's a many faceted issue.
Suffice to say Airbus have potentially screwed themselves with that one single move. They must have been really desperate to move some product I can tell you that much.
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Originally posted by SD67
That's all OK.
I'm not sure if many folks would understand the significance of giving the Chinese the wing, it's a many faceted issue.
Suffice to say Airbus have potentially screwed themselves with that one single move. They must have been really desperate to move some product I can tell you that much.
I don't think Airbus screwed themselves by giving China the wing (and its associated technology) anymore than Boeing did giving Japan the 787 wing (and its associated technology). In todays world, being a subcontractor (or "partner" as the term is used) pays almost as much as the prime contractor from what I am told.
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Bully Boeing 747 picks on A-340 at Heathrow
(http://newsimg.bbc.co.uk/media/images/44178000/jpg/_44178444_plane_3_203.jpg)
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Originally posted by Curval
Whatever you do do NOT lick the wings of the Airbuses or lick your fingers if you have touched any parts made in China.
Just a heads up.
LOL and thanks!
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Originally posted by Yeager
its a common Airbus practice to give away airplanes at the end of the year, just to out produce Boeing. AB wont make any money on that deal.
I've heard that with six you get free egg rolls!
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Emirates ordered 70 A350's (+ an option for 50 more) and 11 more A380's two weeks ago worth $35bn (and an additional 12 777's), and Qantas ordered 68 (+40) A320/321's, and 31 (+49) 737's for 21bn Euros
Tronsky
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I think you're mixing your news, Holden. That agreement is old news and part of the 5% or so content of the 350 that has been risk-spread to China. The 320 assembly plant is a clone of the German assembly plant, from what I understand, and will only assemble about 4 planes per month starting in about 4-5 years. So, most will in Euros, not RMB.
Originally posted by Rolex
Markets will start reacting to this stories today.
Market dropped 232 points. If you didn't go short, you should have.
It will recover some today. It's a short-term spurt fueled on news that the Fed has coughed up cash that's not due for 6 weeks - post New Year. That's an unprecedented move in the history of the Fed to help banks window dress balance sheets for the 4th quarter.
It will only make things worse, but that may even be the plan. The logic may be that the losses that must be revealed on the books next year (they are off-book now) from new accounting rules are so enormous, the only alternative is the Fed jumping in to the rescue. The losses have to be catastrophic for the public to buy into a bailout that will be labeled as a non-bailout.
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the dow dropped 237 but the others remained unchanged. AAPL which is what I'm currently playing remained unchanged. I wish it had tanked though I have puts in place all the way down to 135.
those deal will add a whole new meaning to fried rice I'm afraid, the EU can barely build cars.
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Originally posted by storch
the EU can barely build cars.
EU is a political organization, not a car factory :rofl
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Originally posted by Rolex
In addition, China Investment Corporation is actively recruiting people from around the world to begin shifting its $1.4 trillion of foreign reserve investments away from US Treasuries and into alternate risk, global markets.
I would appreciate a source for this.
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It's from their website in Chinese, but I read it in the Nikkei, Thrawn. They are asking for resumes from people around the world with global markets experience. They will be buying directly into sovereign funds first and not into companies directly. First purchase was about $2 billion into Blackstone, I believe.
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the EU represents a political, economic and cultural melding of europe and europeans. there are varied industries producing product for export to the entire world. with the exception of weapons by H&K and fabrique national or automobiles by diamler benz and BMW none of the products I have sampled are very good. I flew in an airbus once and it was a piece of crap.
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Originally posted by storch
the EU represents a political, economic and cultural melding of europe and europeans. there are varied industries producing product for export to the entire world. with the exception of weapons by H&K and fabrique national or automobiles by diamler benz and BMW none of the products I have sampled are very good. I flew in an airbus once and it was a piece of crap.
VW, MB, BMW, volvo, Saab, Ferrari etc all produce cars that are better than or on par with the leader (japan). I havent tried any of those brands i mentioned that might be assembled in american plants though.
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Originally posted by Rolex
It's from their website in Chinese, but I read it in the Nikkei, Thrawn. They are asking for resumes from people around the world with global markets experience. They will be buying directly into sovereign funds first and not into companies directly. First purchase was about $2 billion into Blackstone, I believe.
Others are also moving their cash out of the US market and that is not a good thing, but it might be a smart thing to do in the short run.
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Who cares they are all targets anyway....
two Types of Aircraft in the world....
Fighters and Targets
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I have to disagree with any except db and bmw. none of the exotics such as ferrari, lambo are anywhere near being as reliable as even crappy american cars. one of my clients owns ferraris, another sells all manner of high end imports (http://www.themiamigarage.com) I have had the opportunity to close inspect and experience many of these very stylish and expensive rides. I have been cautioned that the purchase price on all of these european vehicles will be the cheapest part of owning them.
no thanks, I'll stick with japan for motor vehicles and america for aircraft.
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Well you don't buy a Ferrari to drive everyday to the shops, but you could in a Porsche...if you had to
Tronsky
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Hiya Nilsen. I posted this on September 20th. ;)
Originally posted by Rolex
If you're an individual investor, now is a good time to thinking about this:
1. Go long on the Euro and Yen. Sell US dollars if you have them.
2. Go long in the Chinese, Hong Kong and Indian markets through long-established funds in commodity goods. They will outperform the G3 markets even more than they have done.
3. Go short on the G3 markets in 4th quarter before the large, institutional investors do.
4. Go short on investment banks.
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Ooops forgot the most reliable of them all (imo) Porsche.
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Originally posted by Rolex
Hiya Nilsen. I posted this on September 20th. ;)
Not bad advice you gave there.
I have bought "a few" USD now as abit of a gamble. Ill sit on em for awhile and see how it performs. Could be as smart as investing in sand in Sahara, but who knows ;) If it ever does climb again I can grin. If it doesnt ill get a break from the tax man :D
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Actually Mercedes Benz reliability has gone down the toilet since 1985 when they started to cut spending in production.
MB has suffered from bad subcontractors, electrical problems related to that, manufacturing problems (serious rust in 2 year old vehicles) etc. Toyota beats MB in reliability hands down. I still own two E-class MB anyway for some reason. :rolleyes:
But I'm telling you - they eat money in maintenance. I've spent $7000 maintaining the two of them this year alone. Starting from regular service interval ending up to mechanical repairs and paintjob. I'm thinking of selling the other mb away, they're breaking my bank.
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Neither me nor my father has had any issues with MB and they are "new" cars
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Originally posted by Holden McGroin
There could be some gnashing of teeth in Toulouse too.
Seems there might be more Yuans than Euros in this deal.
Good luck with that.... China builds crap. My company is correcting some items built in china as we speak. The American company that bought the material is very unhappy. They received CHEAP pricing and now are suffering the consequences. The repairs will be as much as what it would take to build correctly here in the states.
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i don't think you can say "china builds crap", you could say some companies in china build crap. Two of my Nikon lens were built in china and they are fine.
But I haven't had the lens checked for lead yet. :eek:
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Yup John.
I bet if you look close at most "high-end" stuff like stereo systems, computers and whatnot there will be a little "made in china" badge somewere on the product or the components inside.
You get what you pay for usually, and that goes for Chinese stuff too.
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Originally posted by Curval
Whatever you do do NOT lick the wings of the Airbuses or lick your fingers if you have touched any parts made in China.
Just a heads up.
yeah, you could end up preggy and not remember why...
TIGERESS