Asian markets have dipped after Cyprus bailout plans triggered fears of an escalation of the Euro zone debt crisis. The EU and IMF want all bank customers to pay a levy in return for a bailout worth 10bn Euros and although the plan is yet to be finalised, the news of the deal caused a rush to the cash machines in Cyprus as people tried to withdraw money.
A major conflict could be brewing between Argentina and Brazil after Rio’s Vale decided to cancel a 6 billion dollars potash development project in Mendoza and the Argentine Labour minister issued a mandatory conciliation which actually impedes implementation of the closing down decision.
Argentina’s GDP expanded 1.9%, following an increase of 2.1% in the last quarter of 2012, compared to the 8.9% of 2011, according to the official but questioned national stats office Indec release on Friday.
The black market dollar exchange rate in Argentina pierced the milestone 8 Pesos mark while the official rate climbed to 5.09 Pesos with the gap between the two markets reaching 57%. The other ‘cash’ option: buying Argentine shares in Buenos Aires and reselling them in New York climbed 10 cents to 8.46 Pesos.
In contrast with the 0.5% inflation reported by the Argentine government’s controversial stats office, Indec, the index based on private estimates and released by opposition lawmakers climbed to 1.23% with an accumulated 25.27% in the last twelve months.
Workers of Spanish airline Iberia called off further strikes in a dispute over thousands of job cuts after unions accepted a mediation plan, the company announced in a statement.
The government of President Cristina Fernandez is furious with the Brazil-based Vale mining company for suspending its 6 billion dollars potash development in Mendoza, the largest investment in Argentina in recent years.
Argentine consumer prices rose 0.5% in February, the smallest gain since June 2009, after supermarkets and home appliance retailers agreed to freeze prices for sixty days, according to the government’s much questioned stats office, Indec.
The European Commission agreed Tuesday negotiating guidelines for talks with the United States on the world's biggest Free Trade Agreement, stressing a pragmatic approach to even sensitive subjects.
Brazilian mining giant Vale announced on Monday it has suspended the 6 billion dollars Río Colorado potash project in Mendoza province. The mining, main producer of iron had halted the work on the project back in December, awaiting tax breaks for the project to help to compensate for soaring costs related to inflation and exchange rates.