The latest ‘FiREapps Q4 2015 Currency Impact Report: A Survey of North American & European Corporate Earnings’ shows the impact of currency rate changes on company earnings is growing fast, as figure below shows:
Source & Copyright©2016 - FiREapps
Not only this, the experts at FiREapps have concluded that Q4 Impact is the largest impact seen to date, with a total of 409 companies— 357 in North America and 52 in Europe— reporting negative currency impacts in 2015 Q4.
Bigger impact than at the euro crisis
Less than three years after the euro crisis, corporates are seeing more significant sustained negative impacts than at the height of the euro crisis. Q4 2015 was the fifth consecutive quarter where negative impact was magnitudes above the running average of previous years. Comparatively, during the euro crisis, negative impacts spiked for two quarters, returning quickly to prior levels.
FiREapps main conclusions are that:
- we are unquestionably witnessing a rise in the level of currency awareness & disclosure(s) as a result of sustained volatility for more than 4 quarters
- volatility is no longer the “New Normal,” just normal: increasing incidence, and magnitude, of volatility around the world.
For a copy of ‘FiREapps Q4 2015 Corporate Earnings Currency Impact Report – for North American and European Corporates’, click here.
FiREapps: Largest total of corporates reporting FX headwinds globally & in N America
The position in China is extremely worrying, with global impact and it is clear there’s much more to come
Five ways for releasing trapped cash in China
At the recent Cash Management University in Paris, BNP Paribas explained how there are now five ways to release trapped cash in China:
FiREApps new range of FX exposure management packages cover all types of company
FiREapps have developed a three-step approach for managing FX exposure: