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Our next guest advises companies on how to avoid currency risk exposure will -- -- -- the CEO fire ax joins us now -- great to seal.
Why -- -- -- -- reaction in US markets and around the world to the news that China mean it was a surprise that China raised interest rates.
Yeah I was a little bit different than -- people expected but really what people are trying to understand and -- -- which is not the big surprise here is.
That currency markets continue and remain very volatile one comment coming out of such -- out maybe one coming out of fed chair Bernanke immediately -- shooting volatility is up to the roof and that's really impacting earnings for corporations.
But there are a lot of companies -- really understanding now how to manage that currency risk by first understanding.
Where their currency risk is second having analytic surrounded and third having good decision making process as you've seen in the news.
Companies like Google and it censure at tech data -- -- these companies really understand there exposes not a matchup.
On the other hand you're seeing companies like an IBM and and -- Chevron for example of big surprises still and a half a billion dollar range the last couple quarters Chevron 400 million dollar loss there so.
Is seeing companies that are still struggling to understand for the currencies are.
And quite frankly more and more investors want to understand where all this currency risk gets wolf.
-- this is something that is changing rapidly over the last few years have you -- -- talk about the yen the dollar and the Euro anymore.
We're talking about the central governments and central banks all over the world manipulating their currency had to get a handle on this.
Really having to understand in a timely fashion and then manage it accordingly.
Really it's important not only to think about revenues but also think about your cost and how they impact the net net operating income.
And so you really have to look to de -- technology it's available leverage that technology to really understand it and create a timely process.
That creates confidence in managing and mitigating that risk.
Because it just to watch her reps and really have currencies moving last quarter -- your dollar 11%.
Where the the margin of General Motors for the quarter at 5%.
With the dollar having such a sharp upturn on the heels of news that a China would you -- the turning point what is.
The longer term implication of this move by China specifically on US industry.
I think that what you're gonna see is actually a flight to quality back to that area you're gonna have to -- back about.
Hollow sound is Europe really are they really doing things so you -- probably have.
More of a strengthening of the dollar impacted by this you've -- already -- coming off purity seeing Brazil coming off.
She got strengthening of the dollar which really is not good news for revenues for -- US based corporations.
It's also could mean that this gold run that we've had over the last really -- 23 months.
Could be coming to an end here at the very least pausing for a lot of and to think.
If it continues to negatively correlated yes but you do still have the flight to quality issue here.
All right wolf -- banks thanks a lot.
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