“La sabiduría de la vida consiste en la eliminación de lo no esencial. En reducir los problemas de la filosofía a unos pocos solamente: el goce del hogar, de la vida, de la naturaleza, de la cultura”.
Lin Yutang
Cervantes
Hoy es el día más hermoso de nuestra vida, querido Sancho; los obstáculos más grandes, nuestras propias indecisiones; nuestro enemigo más fuerte, el miedo al poderoso y a nosotros mismos; la cosa más fácil, equivocarnos; la más destructiva, la mentira y el egoísmo; la peor derrota, el desaliento; los defectos más peligrosos, la soberbia y el rencor; las sensaciones más gratas, la buena conciencia, el esfuerzo para ser mejores sin ser perfectos, y sobretodo, la disposición para hacer el bien y combatir la injusticia dondequiera que esté.
MIGUEL DE CERVANTES Don Quijote de la Mancha.
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12 de agosto de 2015
Here Are the Winners and Losers From China's Yuan Devaluation
Luxury-goods sellers and Chinese airline stocks decline
China's exporters are among biggest winners from PBOC move
Chinese airlines and European luxury carmakers are emerging as the early losers after the People’s Bank of China let the yuan fall the most in two decades.
China’s
surprising move to cut its daily reference rate by 1.9 percent Tuesday
rippled through global markets. Policy makers called the change a
one-time adjustment and said its fixing will become more aligned with
supply and demand.
While it is unclear if the yuan will keep dropping, investors are starting to assess the potential winners and losers.
Losers
* Chinese airlines:
Chinese
carriers have most of their debt in dollars. A weaker yuan will
increase their costs to pay it off and hurt their earnings.
China
Southern Airlines Ltd. declined 18 percent in Hong Kong trading, the
most since 2001. China Eastern Airlines Ltd. slumped 16 percent, the
steepest drop in seven years.
Each 1 percent drop in the yuan
erodes 767 million yuan ($121 million) from China Southern’s annual
profit, according to the carrier’s 2014 financial report.
* European luxury-goods sellers:
As
the European Union’s major trading partner, China and its growing
middle class has been a boon for the region’s luxury-goods makers. A
weaker yuan makes it more expensive for Chinese consumers to buy German
cars, Swiss watches and French handbags.
Shares of BMW AG, which
received about 19 percent of its revenue from China in 2014, sank 4
percent in Germany. China also accounted for about 10 percent of Daimler
AG’s sales.
LVMH Moet Hennessy Louis Vuitton SE slid 5.4 percent.
Sales from Asian nations excluding Japan accounted for about 29 percent
of the luxury-goods maker’s sales last year.
* Consumer-product makers with China as the biggest overseas market:
Apple
Inc. slid 5.2 percent in the biggest decline since January 2014. China
was Apple’s second-largest market for the iPhone in the first half of
this year. The yuan’s devaluation may prompt the company to raise prices
or contend with contracting margins and unit growth, according to Bloomberg Intelligence.
Swatch Group AG slumped 3.6 percent. The Swiss watch maker derived 37 percent of its 2014 revenue from the greater China region.
* Commodity producers:
The
yuan’s decline increases the cost of imports, including commodities.
Vale SA, the world’s biggest iron-ore producer, dropped 5.1 percent in
Sao Paulo. China accounted for 37 percent of the Vale’s revenue in the
second quarter.
China’s imports contributed to 35 percent of the
Australian mining company BHP Billiton’s sales last year and accounted
for 38 percent of the sales of Rio Tinto Plc.
* Asian Currencies:
All
major Asian currencies fell on concern a weaker yuan will force other
policy makers in the region to devalue their foreign-exchange rates as
cheaper Chinese exports edge out competitors.
The Singapore dollar
led the decline, falling 1.4 percent in the biggest selloff since 2011,
while the South Korean won dropped the most since May 2013.
Winners
* Chinese exporters:
Local
exporters in general benefit from a cheaper yuan. China Machinery
Engineering Corp. rose as much as 5.9 percent in Hong Kong, while Lenovo
Group Ltd. closed 2.9 percent higher. Each gets more than 65 percent of
revenue from overseas.
China car exports have slowed in the past
years as the weakening of the yen and won increased the pricing
advantage of Japanese and South Korean competitors, according to Dong
Yang, secretary-general of China Association of Automobile
Manufacturers. Yin Tongyue, chairman of Chery Automobile Co., China’s
biggest vehicle exporter, says he supports a weaker yuan as it is good for the company’s overseas sales.
Textile
and clothing makers that sell to overseas markets are among companies
that will benefit from the yuan’s depreciation, according to Delong
Yang, an investment manager at China Southern Fund Management. Huafang
Ltd., a Chinese textile manufacturer, surged 10 percent in Shanghai.
Li
& Fung Ltd., a Hong Kong-based trading company which sells
China-made goods from clothes and toys to U.S. and Europe, rose 5
percent in Hong Kong.