Chile's country risk assessment shot this week to its highest level since August 2003 but is still the lowest in Latinamerica. International volatility with investors selling stocks and higher risk bonds and moving into more stable US bonds is seen as the cause behind the events of last week.
United States Treasuries surged Thursday in a flight to safety as stocks plunged in the US and Europe on growing fears of a global credit crunch and weaker than expected economic data.
The American Task Force Argentina (ATFA) applauded Wednesday the US Government for formally stating for the first time that the government of Argentina must honor the repudiated sovereign debts owed to international creditors, including over 20 billion US dollars in default claims by international bondholders and that these lingering issues adversely impact Argentina's investment climate.
The United States economy grew faster than expected over the past three months, 3.4% on an annual basis, the best quarterly performance since early 2006. In the previous quarter the economy expanded 0.6%.
Unite States stock markets dropped sharply Friday, extending a global share sell-off amid fears about the effect of higher interest rates on the world economy. There are growing concerns that higher rates will hit corporate profits and takeover deals, and dent consumer spending.
The International Monetary Fund raised its forecast for growth in the global economy for this year to 5.2%, up form its April forecast of 4.9%.
The Argentine peso slid for the third day in a row, hitting four-year lows against the US dollar in the range of 3.15/3.20 while the stock market recovered at the end of the day after having lost ground earlier.
The European Union urged China on Monday to be more vigilant about product safety, from toothpaste to pet food, and to provide more information about the measures it takes against manufacturers of fake or shoddy exports.
Brazil is considering requesting a waiver from Mercosur with the purpose of hiking the common external tariff (AEC) on shoes and textiles from 20 to 35%, if Uruguay refuses to accept the proposal, reports the Sao Paulo press.
Chile's Central valley fruit and vegetable growers were not prepared for this winter's freezing weather in more ways than one. Agriculture authorities reported that only 8% of the crops destroyed by icy weather were insured against the cold.