----- Original Message ----- From: Ian Murray <seamus2001 at attbi.com> To: <lbo-talk at lists.panix.com> Sent: Thursday, June 13, 2002 10:22 PM Subject: Re: Oracle's second R & D Centre for China
>
> ----- Original Message -----
> From: "pms" <laflame at aaahawk.com>
>
> > > http://economictimes.indiatimes.com/articleshow.asp?art_id=12852781
> > >
> > >
> > What I wanna know is, with some real obvious currency rate adjustments
going
> > on among nations, what does it mean that China's becoming an economic
> > power-house, yet their currency is not convertible? How does that
figure
> > into the corporate profit equation, etc?
>
>
> ===========
>
> It means they have until 2006 [pretty sure that's the year the currency
goes to market] to get their
> accounting in order with regards to GDP numbers, ex-im accounts and the
like or the currency sharks
> in the South China Sea will rip into them bigtime.
>
> Ian
>
Hmm. Hadn't thought about that. What I'm trying to get to though is somehow related to US multinationals. I've mentioned that they were complaining about profit loss due to currency issues, several qtrs before the 2000 market bust. Now, this qtr, I've already seen a coupla mentions of earnings growth because of the dollars reversal.(not that that's specifically mentioned as the reason). So there's very immediate sensitivity in the earnings reports to these issues. So what about US multi's dealing with China? What does that fix do to their bottom lines? Wouldn't it create a false(in the actually existing system) stability to their business with China? By 2006 a lot of their investing will be over.