----- Original Message -----
Sent: Tuesday, December 12, 2000 11:03
PM
Subject: Re: Re: [sharechat] 2001 -
Airlines
Hugh,
You got some good
points, but:
You were referring to the importer/exporter
both handling goods contracted ahead in $US.
In theory, the importer would still pay the
same $US as before (he does not loose out) and the NZ exporter would get
more NZ$ than previously.
In practice, the importer likes the exporter to
share some of his winnings and hence the importer may sometimes pay somewhat
less $US.
It all depends on the relationship they have
and fixed contracts.
Obviously, when a country has a lower currency,
it can compete easier, but at the same time, unless you have certain
safeguards(we don't have many here), you could much easier lose those
companies who are exporters.
I think that a certain amount of belt
tightening is in order in those conditions as long as we can
increase the number of units to export!!
What is galling is that those countries
who criticize NZ most, are also those with the most protection/tariffs
measures in place! Example: US wants us to maintain our defense
forces but puts new lamb quotas in place. A lower NZ$ is not helping in this
case.
Were you talking about Air NZ?. I read that
unlike Quantas, they did not have their fuel hedged. I don't want this
stock.
I have met a small number
of world class NZ directors; I regret to say that the
rest should be classified as
'undertakers'.
Regards,
Gerry
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