Big+Currency+Bets+Backfire

Big+Currency+Bets+Backfire - Help (new window) USF Gleeson...

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Help (new window) USF Gleeson Library | Basic Advanced Topics Publications My Research 0 marked items Databases selected: ABI/INFORM Dateline, ABI/INFORM Global, ABI/INFORM Trade & Industry Document View « Back to Results Print | Email | Copy link | Cite this | Mark Document Translate document from: Other available formats: Abstract Full Text Big Currency Bets Backfire ; Huge Losses From Dollar's Gains Surface at Companies in Developing World Antonio Regalado in Mexico City and John Lyons in Sao Paulo, Brazil . Wall Street Journal . (Eastern edition). New York, N.Y.: Oct 22, 2008 . pg. B.1 Abstract (Summary) Officials at Citic Pacific Ltd., a Hong Kong-listed conglomerate backed in part by the Chinese government, have accused the company's finance director of making unauthorized bets related to the Australian dollar, resulting in nearly $2 billion of foreign-exchange losses. » Jump to indexing (document details) Full Text (1208 words) (c) 2008 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction Interface language: Go
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or distribution is prohibited without permission. One day, Controladora Comercial Mexicana SAB de CV was thriving as Mexico's No. 3 retailer and a competitor of discount giant Wal-Mart Stores Inc. The next day, Oct. 9, the family-owned chain, known to Mexican shoppers as La Comer, had filed for bankruptcy protection, crippled by risky foreign-currency bets. Such abrupt reversals have gotten more common these days. As global stock markets have plunged in recent months, so has the value of almost everything else, from Mexico's peso to the price of oil. That's left some companies that made big wagers on the direction prices were headed reeling from unexpected losses.
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Throughout Latin America, companies are telling investors they have lost millions, in some cases billions, of dollars due to foreign- exchange gambles that, in some cases, had little to do with their core businesses. Losses from bad-currency bets are ricocheting through the world's major developing economies, including India and Korea. Officials at Citic Pacific Ltd., a Hong Kong-listed conglomerate backed in part by the Chinese government, have accused the company's finance director of making unauthorized bets related to the Australian dollar, resulting in nearly $2 billion of foreign-exchange losses. For now, however, such losses appear to be most widespread in Brazil and Mexico. In Brazil, the growing
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This note was uploaded on 12/31/2009 for the course BIZ 178 taught by Professor Meford during the Fall '09 term at Berkeley.

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Big+Currency+Bets+Backfire - Help (new window) USF Gleeson...

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