The Peruvian currency and Lima’s stock market partially recovered on Tuesday from the dramatic Monday collapse when it was confirmed nationalist Ollanta Humala had been elected in a very tight run-off to become the country’s next president.
Flights from Uruguay’s Carrasco international airport were suspended on Tuesday until further notice because of the proximity of Chile’s Puyehue volcano ash cloud that on Monday forced similar decisions for Buenos Aires City main international and domestic air terminals.
Economy minister Fernando Lorenzo accused rating agencies of failing to recognize the increasing strength of Uruguay’s sustained economic growth and therefore denying its investment grade status.
The Chilean volcano Puyehue ash cloud has reached the Argentine capital after moving across the Greater Buenos Aires, but the due effects of the cloud are seen to be minimal. Meanwhile local airlines confirmed cancelled all flights until further notice at the international airport of Ezeiza and at the domestic-flights metropolitan Aeroparque.
Argentina will be hosting on Thursday the first meeting of the South American Economy and Finance Council that will bring together Economy ministers and Central bank governors from members of Unasur, Union of South American Nations.
Argentina’s capital flight is forecasted to reach 17 billion US dollars in 2011, above the 11.4 billion of last year because of electoral year uncertainties, and in spite of a larger trade surplus.
The International Monetary Fund backed the British government's plans to reduce the budget deficit, but said tax cuts or more quantitative easing may be needed if growth proves persistently weak.
European Union farm ministers will try on Tuesday to agree financial aid for fruit and vegetable producers whose sales have been hit by an E.coli outbreak that has so far claimed at least 22 lives in Europe and triggered a scare in fresh produce consumption.
Eduardo Guilisasti, CEO of Chile’s Concha y Toro winery, placed ninth on Decanter magazine’s recently released “2011 Power List.” The bi-annual ranking lists the 50 most influential people in the winemaking world based on their level of influence over consumer choice in wine. This year’s list elevated Guilisasti from his 2009 ranking as 13th.
The increase in imports during the first quarter of this year could indicate Brazil has begun a de-industrialization process, cautioned Jose Augusto de Castro, president of the country’s Foreign Trade Association, AEB.