Aussie airlines benefit from Aussie currency’s strength
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Qantas and Virgin Blue, struggling rag trader Pacific Brands and Coca-Cola Amatil have been rated among the biggest beneficiaries of the Australian dollar’s current strength — but overall corporate losers far outweigh the winners. In separate research reported by The Australian, brokers Macquarie Equities and Goldman Sachs JBWere have assessed the specific earnings impact across the blue-chip sector — and there are some surprising inclusions. The accepted rule of thumb is that companies with predominantly offshore earnings will be hit as they have to translate foreign earnings (typically in $US) back to the local Australian dollars.
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