Economy

Economy
Monday, March 23rd 2015 - 17:13 UTC

Petrobras corruption scandal reaches New York court: banks will have to explain sale of bonds to US investors

 Itau and Bradesco were book runners on a number of Petrobras bond issues.

Fifteen banks will join Petrobras next week, April 3, in a New York court to explain how they did nothing wrong when selling 98 billion dollars worth of the Brazilian state oil company’s bonds to American investors. Of the 15, lawyers representing the investment banking divisions of Itau and Bradesco will appear before New York judge Jed Rakoff in hopes to escape the scandal.

Saturday, March 21st 2015 - 06:56 UTC

Argentina's current account deficit widened to 5.07bn in 2014

The Economy Ministry said Argentina posted a 6.42bn surplus on trade and services, but that the total outflow of income was 11.40bn. The sum in 2013 was 4.7bn.

Argentina’s current account deficit widened 7.9% to 5.07 billion dollars in 2014 as Latin America’s third-biggest economy eked out meager 0.5% growth, official data showed. Exports fell 11.9% from 2013 to 71.94bn, hurt by low international prices for Argentine soy, wheat and corn as well as weakened demand in key trading partner Brazil, where economic growth is also stagnant.

Saturday, March 21st 2015 - 06:43 UTC

Brazilian prosecutors call for tougher prison sentences and legal power to crack down corruption

The 'Car Wash' case has angered Brazil but it has not reduced corruption or impunity in the country,” said the lead prosecutor in the probe, Deltan Dallagnol.

Prosecutors who uncovered Brazil's biggest corruption case called for tougher prison sentences and more legal powers to crack down on rampant graft that costs taxpayers more than the annual budget for education and health.

Saturday, March 21st 2015 - 05:55 UTC

Cristina Fernandez warns Citibank must comply with Argentine law

Banks operating in Argentina “must obey Argentine laws, just like in every country. We're no different,” the president said.

President Cristina Fernandez warned on Friday that banks operating in Argentina must obey its laws, amid a row over Citibank's refusal to defy a US court order blocking Buenos Aires from repaying its restructured debt. At the end of the month, 31 March, Citibank as custodial has to pay Argentine restructured bonds.

Friday, March 20th 2015 - 07:42 UTC

HSBC closing Jersey accounts belonging to customers living in UK

Asked about the move, Jersey's Chief Minister Ian Gorst told BBC News that banks “have to comply with the legislation that we have in place”.

HSBC is closing accounts on Jersey belonging to customers living in the UK. It is part of a move by UK banks carrying out checks on the identity and addresses of thousands of their customers on the Channel Islands. The London-based bank said it had taken measures to prevent its services being misused.

Friday, March 20th 2015 - 07:19 UTC

Brazil's Real drops to lowest since April 2003; loss of 17% against the dollar this year

The political stalemate situation with congress and the Petrobras corruption scandal is eroding confidence in the Brazilian currency

No end to Brazil's economic woes: the Brazilian currency depreciated 2.7% on Thursday, at 3.30 Reales to the US dollar, its worst performance since April 2003. With this loss of ground the Real cut short a three day recovery, because since last Monday it had been climbing against the greenback.

Friday, March 20th 2015 - 07:12 UTC

Names of Argentines with HSBC offshore accounts in Switzerland to be made public

Feletti said the names of the account holders will be made public and so will the possibility of an HSBC  pre-arranged 'modus operandi' to aid capital flight.

Argentina will move forward with its investigation of the HSBC offshore accounts in Switzerland, and will make public the names of those Argentine citizens and organizations that held money overseas in the financial entity, allegedly with the purpose of eluding local taxes.

Thursday, March 19th 2015 - 08:01 UTC

Argentina asks Citigroup how it will react to Judge Griesa' decision

“There were comments about removing their license to operate in Argentina, because that’s what Citibank told Griesa,” Minister Kicillof stated.

Argentine Economy Minister Axel Kicillof has revealed the government sent a letter to Citigroup asking how the bank will react, after New York district judge Thomas Griesa decided not to kill an injunction that blocked Citi from processing interest payments on 2.3 billion dollars of Argentina bonds, under Argentine law.

Thursday, March 19th 2015 - 07:55 UTC

Fed no longer 'patient' about rates, but drops April and targets June

Since last December, Yellen and the Fed have been saying that they “can be patient” in the timing of when rates are raised.

The U.S. Federal Reserve says it can no longer remain “patient” about changing rates, an indication that interest rate hikes could begin this spring. But in a news conference, Fed chair Janet Yellen said the central bank has not settled on the timing of the rate hike.

Wednesday, March 18th 2015 - 08:37 UTC

Brazil coordinates efforts to guarantee supply of basic products to Venezuela

Maduro made the request personally to president Rousseff on a couple of opportunities according to Brazilian diplomatic sources

Following a request from Venezuela, the Brazilian government has acted alongside Brazilian companies to guarantee supply of basic products during Venezuela's economic crisis, according to diplomatic sources. The request was made by President Nicolas Maduro in at least two meetings with President Dilma Rousseff, in December 2014 and the day after Rousseff began her second term, on January 2.

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