Tuesday, April 8, 2014 Monday, March 17, 2014 Saturday, March 1, 2014 Tuesday, February 18, 2014 Monday, February 17, 2014 Sunday, February 16, 2014 Sunday, January 26, 2014 Friday, January 24, 2014 Wednesday, January 22, 2014 Monday, January 20, 2014
Argentina is short of hard currency because the country remains absent from money markets as a consequence of pending litigation with hedge funds, plus the fact that the country’s unorthodox policies do not convince investors.
Even short in dollars Argentina must pay for imports, maturing debt and the energy bill, because it is now several years since the country from an exporter of oil and gas has become a net importer. Frozen extraction prices during almost a decade scared any possible exploration or drilling for new resources. (via Argentine central bank reserves fall below the 30bn dollars threshold — MercoPress)

Argentina is short of hard currency because the country remains absent from money markets as a consequence of pending litigation with hedge funds, plus the fact that the country’s unorthodox policies do not convince investors.

Even short in dollars Argentina must pay for imports, maturing debt and the energy bill, because it is now several years since the country from an exporter of oil and gas has become a net importer. Frozen extraction prices during almost a decade scared any possible exploration or drilling for new resources. (via Argentine central bank reserves fall below the 30bn dollars threshold — MercoPress)

Thursday, December 26, 2013
Inflation’s picking up, but household spending not impressing.  Abenomics is producing mixed results [with a bearish hue] 

Inflation’s picking up, but household spending not impressing.  Abenomics is producing mixed results [with a bearish hue] 

Sunday, December 15, 2013 Saturday, December 14, 2013
CENTRAL BANK TO CHANGE TACK? 
In any case, economists say Brazil’s fundamental story of weak growth will likely remain unchanged, which could convince the central bank to slow or even stop its current cycle of interest rate hikes despite forecasts that inflation will stay above the center of the official target through 2017. 
The central bank raised its benchmark rate to 10 percent on Wednesday, the highest among major economies, but hinted at smaller hikes in the future. 
"The next monetary policy decision will be taken in a context of very slow growth. This is why we believe the central bank could lay the ground for a slower monetary tightening," said Mauricio Molan, chief Brazil economist at Santander. 
The central bank started to raise interest rates in April, when the economy seemed to gain a more solid footing, boosting inflation. Other government stimulus such as tax breaks and subsidized credit lines remained in place, helping boost industrial output and business investments until July. 
Economists say that any positive effect from the stimulus measures faded in the third quarter. The GDP report will likely show a drop in industrial production and investments as measured by gross fixed capital formation. (via Brazil’s economy slumps in third quarter as stimulus fades | Reuters)

CENTRAL BANK TO CHANGE TACK? 

In any case, economists say Brazil’s fundamental story of weak growth will likely remain unchanged, which could convince the central bank to slow or even stop its current cycle of interest rate hikes despite forecasts that inflation will stay above the center of the official target through 2017.

The central bank raised its benchmark rate to 10 percent on Wednesday, the highest among major economies, but hinted at smaller hikes in the future.

"The next monetary policy decision will be taken in a context of very slow growth. This is why we believe the central bank could lay the ground for a slower monetary tightening," said Mauricio Molan, chief Brazil economist at Santander.

The central bank started to raise interest rates in April, when the economy seemed to gain a more solid footing, boosting inflation. Other government stimulus such as tax breaks and subsidized credit lines remained in place, helping boost industrial output and business investments until July.

Economists say that any positive effect from the stimulus measures faded in the third quarter. The GDP report will likely show a drop in industrial production and investments as measured by gross fixed capital formation. (via Brazil’s economy slumps in third quarter as stimulus fades | Reuters)