Economy

• Tuesday, May 13th 2008 - 21:00 UTC

  French banks take their toll from the subprime crisis

  France's biggest retail bank Credit Agricole, is contemplating asking shareholders for an estimated 9.1 billion US dollars to help its financial position after further subprime losses. The move comes after more write-downs at its Calyon investment banking unit as a result of the credit squeeze.

• Tuesday, May 13th 2008 - 21:00 UTC

  Inflation “rapidly raveling” Kirchner's economic model

  

  Former Argentine Economy minister Roberto Lavagna and considered the architect of the spectacular recovery of the Argentine economy following the 2001/02 melting and default said that former president Nestor Kirchner “does not understand economics” and his economic model is “rapidly raveling”.

• Tuesday, May 13th 2008 - 21:00 UTC

  Erupting volcano imperils two million sheep in Patagonia

  Two million sheep in the Argentine Patagonia province of Chubut are suffering the consequences of the ash blanket spewed by the eruption of the volcano Chaiten in neighboring Chile according to primary estimates from local authorities.

• Tuesday, May 13th 2008 - 21:00 UTC

  US Fed member formally puts inflation as a “key risk”

  The president of the US Federal Reserve Bank in Cleveland Sandra Pianalto said Tuesday in Paris that inflation remains a top risk to the economic outlook, but that the Federal Reserve's rate-cutting strategy was likely not to stoke inflationary pressures.

• Monday, May 12th 2008 - 21:00 UTC

  HSBC writes off U$S 3.2 billion, totaling 15.6 billion

  Europe's biggest bank HSBC has written off 3.2 billion US dollars in the first three months of 2008 as a result of its exposure to the US sub-prime market. The write downs, which are lower than the total written off in the final quarter of 2007, are in line with what the bank had predicted.

• Monday, May 12th 2008 - 21:00 UTC

  World record rice production in 2008, but prices climbing

  Rice production in Asia, Africa and Latin America will reach record highs in 2008, but prices could also continue to soar in the short term, the United Nations Food and Agriculture Organization (FAO) reported on Monday.

• Monday, May 12th 2008 - 21:00 UTC

  China faces strongest inflation is almost 12 years

  China's consumer prices increased to a 12 year high in April pushed by food prices and in spite of government pledges to tackle inflation. Annual inflation rose to 8.5% from 8.3% in March with food costs 22.1% higher in April from a year earlier, driven mainly by demand for pork.

• Monday, May 12th 2008 - 21:00 UTC

  Uruguay divided over “invasion” of Argentine farmers

  The Kirchners' administrations policy of heavily taxing Argentine farmers is having a very positive effect for neighboring Uruguay where a growing number of the most efficient farmers are now established, but some locals are not so convinced.

• Sunday, May 11th 2008 - 21:00 UTC

  Conflict fears make Argentine savers opt for US dollars

  

  Seven out of ten Argentines with savings in the banking system have been changing their options from local pesos to US dollars or other currencies or assets, fearing the consequences of the unresolved farmers' conflict could lead to a run on the banks and the government's response of freezing assets, according to some Argentine media.

• Sunday, May 11th 2008 - 21:00 UTC

  Third US bank failure in 2008; regulators to increase staff

  

  The United States ANB Financial National Association Arkansas based banks have been closed by the Office of the Comptroller of the Currency after discovering “unsafe and unsound” business practices there. The Federal Deposit Insurance Corporation has named a receiver.