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Is Airbus in the Euro Business?


All over the news today: the Pentagon chooses Airbus to revamp it’s super-tanker fleet, awarding an up to $100 billion (USD) contract to the French aircraft builder.  Here’s the article from the New York Times.  National security and American jobs aside, the currency behind the contract is what has me a little curious.  I wonder, and I can’t find this information in the news, whether Airbus had to bid the contract in U.S. dollars, or if they were allowed to bid in Euros.  If it’s the former, there’s an investment bank or two out there that are going to be beating down EADS’ door for their foreign currency hedging or options business.  $100 billion USD in outright hedges or options, there are some traders in London licking their lips over this one…


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