MercoPress. South Atlantic News Agency

Brief News

Headlines:
Chavez receives Russian built military helicopters; Copper prices record trend forecasted to continue; March consumer inflation in Chile: 0.6%.

Chavez receives Russian built military helicopters

Venezuela took delivery this week of three Russian-built military helicopters, the first of a total of 15 ordered from Moscow, and President Hugo Chavez said they would help protect the country if the US ever mounted an invasion. Washington has dismissed claims of a possible invasion as ridiculous and says Mr Chavez's military purchases pose a threat to regional stability. A crowd of Russian and Venezuelan generals and diplomats was treated to an air show, displaying the strengths of the Russian-built helicopters. A group of around 20 parachutists jumped in formation out of the olive green MI-17 helicopters during Monday's ceremony. President Chavez said Venezuela's latest purchases could be used to transport parachute troops quickly into combat and this "would be ideal for a war of resistance". The Venezuelan president repeatedly makes reference to his concerns that the US may want to invade Venezuela to seize its oil reserves and taunts President George Bush describing him as "Mr. Danger". Army Commander Gen Raul Baduel said Venezuela planned to buy a total of 33 helicopters from Russia adding that the country was ready to buy Russian fighter jets. Venezuela has also agreed to buy a total of 100,000 Russian manufactured Kalashnikov assault rifles. Mr Chavez also repeated his accusation that the US had blocked a deal to buy training aircraft from the Brazilian manufacturer, Embraer, because the Brazilian planes contained protected American technology. "Nothing and nobody will stop us from making our country's armed forces stronger," he said, while stressing that Venezuela was not preparing to invade anybody.

Copper prices record trend forecasted to continue

Australian based Macquarie Research expects the trend to higher prices for copper to continue for at least the balance of 2006. Copper prices are already up by 25% this year, prompted by global inventory declines and supply worries in Indonesia, Zambia, Mexico and Chile. In a recent study the company found that copper deficits are on the horizon in 2006. "With supply just not arriving quickly enough, it is looking increasingly as though it will take a severe downturn in economic growth and copper demand growth to tip the market into surplus," Macquarie's analyst Adam Rowley said. The Macquarie Bank now forecasts a refined copper shortfall of 50,000 metric tons, down from an expected surplus of just over 200,000 tons at the beginning of the year, Rowley said. "This has major implications for prices. With copper stocks still chronically tight, the continuing delays in the delivery of supplies mean we can expect prices to hold at least at current levels through the remainder of 2006," said Rowley. Macquarie's experts expect that in 2007 the copper market will move into a small surplus of 100,000 tons. Copper for May delivery on the Comex division of the New York Mercantile Exchange reached a new record, 2.5310 US dollars per pound this week ? representing a 71% gain in 12 months. By Geoff Burt The Santiago Times - News about Chile

March consumer inflation in Chile: 0.6%

The Chilean consumer prices index rose 0.6% in March (similar to March 2005), totalling 4% in the last twelve months and 0.6% in the first quarter of this year, reports the country's Statistics Institute. The underlying consumer prices index which excludes fuel, fresh fruit and vegetables expanded 0.7% in March; 3.7% in the last twelve months and 0.8% in the first quarter of 2006. The items with the highest increase in March were Education and Leisure, 3.1%, followed by others, 1.2%; clothing 0.9%; housing 0.5% and health 0.1%. The release also shows that Housing equipment dropped 0.1% while food and transport remained unchanged. In the last twelve months the items with the highest variations are Transport and Others, 6.4% and 6.8%. In contrast, Housing equipment and Clothing contracted 0.5 and 0.6%. Education was particularly significant since in March schools in South America resume activities. Wholesale prices in February jumped 1.3% accumulating 3.3% in the first two months of 2006 and 5.9% in the last twelve months. In March domestic produce prices in Chile experienced an average increase of 0.2% and imported goods 5.3%. Among domestic production, the mining and quarry index rose 3.8% but fisheries dropped 3.9%. Among imported products, the mining goods index went up 14.3% and manufactured goods 3.2%.

Geoff Burt - The Santiago Times - News about Chile