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Apr-25-2008Argentine Bonds Tumble After Economy Minister Lousteau Resigns(topic overview)
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BUENOS AIRES (Reuters) - Argentine Economy Minister Martin Lousteau resigned on Thursday after less than five months managing Latin America's No. 3 economy and was replaced by the tax agency chief, a government source said. Lousteau, 37, had looked increasingly isolated in recent weeks and was sidelined in tense negotiations between the government and the country's disgruntled farmers, raising speculation that he would not last in the job. "He's presented his resignation," said the source, who asked not to be identified. He added that Lousteau's replacement would be economist Carlos Fernandez, head of the AFIP tax agency and a close ally of President Cristina Fernandez and her husband, ex-President Nestor Kirchner. [1] Since March, Carlos Fernandez headed the Federal Public Income Administration, or tax agency, known as AFIP in Spanish. Previously he was economy minister for the populous and economically powerful province of Buenos Aires. Other jobs with the national government included economy subsecretary for relations with the provinces and national director of tax coordination with the provinces. He also worked as subsecretary of fiscal policy in Buenos Aires province. He has a degree in economics from La Plata National University, and specialized in public finance and tax administration. He is a Peronist and considered close to President Cristina Fernandez and her husband ex-President Nestor Kirchner, as well as to powerful Cabinet Chief Alberto Fernandez. He also has a reputation as a technocrat, having worked in previous administrations since the late 1980s.[2]
BUENOS AIRES, April 25 (Reuters) - The replacement of Argentina's economy minister shows President Cristina Fernandez and her husband, former President Nestor Kirchner, will keep tight control of economic policy, analysts said on Friday.[3]
BUENOS AIRES, Argentina (AP) — Argentine Economy Minister Martin Lousteau is resigning, the country's official news agency reported Thursday. The Telam news agency cites unidentified Economy Ministry sources as saying that the 37-year-old minister submitted his resignation late Thursday. Other news media including the major daily newspapers La Nacion and Clarin are also reporting the resignation. Lousteau was the head of a state-run bank when he was tapped for the economy job by President Cristina Fernandez in December.[4] BUENOS AIRES (Thomson Financial) - Economy Minister Martin Lousteau was sacked Thursday by President Cristina Kirchner because he did not agree with her economic policy, a government official told Agence France-Presse. The president asked Lousteau for his resignation because of differences on how to carry out her economic policy, the official said.[5] Buenos Aires - Argentine Economy Minister Martin Lousteau got the boot from President Cristina Kirchner after four months in office over a farmers strike and differences within her administration over economic policy, national media reported Friday, citing a ministry spokesman.[6]
President Cristina Fernandez de Kirchner herself has accused the agricultural sector of seeking excessive profits and of demonstrating "pre-democratic" tendencies, reinforcing fears of a breakdown in talks and new strikes. Those concerns have caused bond yields to widen, while country risk has risen to a three-year high. The continuing stalemate may lead to cabinet changes -- it is generally assumed that Economy Minister Martin Lousteau's days are numbered -- although in practice this is unlikely to herald any shift in policy. This bleak panorama for future talks is not likely to be brightened by the news that former President Nestor Kirchner will take over the presidency of the ruling Peronist party in the next few days, after the electoral authorities disqualified his only competitor for the post.[7] The bond's price fell 1.75 cents on the dollar to 78.75 cents, the lowest since Aug. 21. Lousteau's resignation comes just four months after President Cristina Fernandez de Kirchner succeeded her husband, Nestor Kirchner. Shortages of products such as beef and poultry have surfaced in South America's second-biggest economy after farmers carried out a three-week nationwide strike last month to protest the export taxes.[8]
Fernandez, an expert on state finance close to former president Nestor Kirchner (2003-2007), is to be sworn in Friday at the presidential palace, state news agency Telam said. Lousteau who took over the economy portfolio when Kirchner was sworn in on December 10, leaves his post as her government struggles to resolve a bitter dispute with farmers who staged a crippling three-week strike last month. At a government function late Thursday, Nestor Kirchner questioned "economists and leaders who want to cool down the economy," with its accumulated growth rate of 45 percent over five years. "If the economy cools down, Argentines dont consume, they dont eat, and without consumption, they can export more and earn more," Kirchner said, in a veiled reference to the countrys agricultural producers. On April 2, Argentina 's farmers declared a 30-day halt to a their strike, which was the first major test of the new Kirchner government and, some say, sharply eroded its power. During their 21-day strike, thousands of farmers erected some 400 road blocks in central Argentina, leading to unprecedented shortages of food and raw materials in major urban centers.[9] Former President Kirchner said last night that farmers opposing a new variable export tax on grains and oilseeds are trying to "freeze'' Argentina's economy, which has grown faster than 8.5 percent in each of the past five years following the country's default on $95 billion of bonds in 2001. "They want to sell everything abroad because food prices are absolutely expensive,'' Kirchner said in a speech to Peronist party supporters in Buenos Aires province. "They don't care about the stomachs or pocketbooks of Argentines.''[10]
BUENOS AIRES, Argentina (CNN) -- Argentina's economy minister has resigned in the wake of a crippling farmers' strike that emptied store shelves and cut exports, the country's news agency reported.[11] Argentina's economy minister, Martin Lousteau, has resigned after less than five months on the job, officials say. He was behind a tax rise on soybean exports, which triggered a three-week strike by Argentine farmers that resulted in widespread food shortages.[12] BUENOS AIRES: Argentine Economy Minister Martin Lousteau has resigned, a government source said on Thursday. Rumors had been circulating about his likely resignation in recent weeks amid tense talks between the government and the country's farmers, who ended a three-week strike this month.[13] BUENOS AIRES, Argentina (AP) — Argentine Economy Minister Martin Lousteau has resigned, a government official told The Associated Press Thursday. The official is close to the Economy Ministry, but asked not to be identified further because he is not authorized to speak on behalf of the government and the announcement is not yet official.[14] BUENOS AIRES (Reuters) - Carlos Fernandez was named Argentina's economy minister on Thursday to replace Martin Lousteau, who resigned. Here are some facts about him.[2]
Carlos Fernandez, who is not related to the President and was named as head of Argentina's tax agency in March, will take office to replace Lousteau at 6 p.m. New York time. "I'm concerned about the economy,'' Fernandez told reporters today outside his home on the outskirts of Buenos Aires. He asked farmers to "remain calm, I'll do my best.''[10]
Martin Lousteau, 36, is to be replaced Friday by Carlos Fernandez, the head of Argentina 's tax collection agency, the state news agency said. "The president asked Lousteau for his resignation because of differences on how to carry out her economic policy," a government official told AFP early Friday.[9] Martin Lousteau's departure comes 4' months into the administration of President Cristina Fernandez de Kirchner. He is the first senior member of the new president's team to step down. Lousteau presented his resignation Thursday afternoon, according to the Telam, the National News Agency of Argentina.[11] April 25 (Bloomberg) -- Argentine Economy Minister Martin Lousteau resigned four months into President Cristina Fernandez de Kirchner's administration amid disputes over farm policies and accelerating inflation in South America's second-largest economy.[10] Working for four months into President Cristina Fernandez de Kirchner's administration, Lousteau resigned over the accelerated inflation rate in South America's second-largest economy. Lousteau tried to answer to the question posed about the credibility of inflation figures and avert a protest by farmers this year that led to food shortages, but to no avail.[15]
Lousteau, 37, struggled to address questions about the credibility of inflation data and avert a strike by farmers that led to food shortages and the biggest anti-government demonstrations since 2001. His appointment to the Economy Ministry was one of the few cabinet changes Fernandez made after succeeding her husband, Nestor Kirchner, as president Dec. 10.[10] Martin Lousteau, a 36-year-old wunderkind and former head of a state-run bank, reportedly had run-ins with other Fernandez aides over inflation and the direction of the economy after a bitter 21-day farm strike. The president's youngest cabinet minister submitted his resignation late Thursday, according to a source close to the Economy Ministry, who asked not to be identified by name because he is not authorized to speak on behalf of the government.[16] Neither the Cabinet chief or new minister are related to the president. The president hasnt publicly commented on the reasons for Lousteaus exit, but he reportedly had run-ins with other aides over inflation and the direction of the economy following a bitter 21-day farm strike.[17]
April 25 (Bloomberg) -- Argentine benchmark dollar bonds sunk to an eight-month low after Economy Minister Martin Lousteau resigned amid a surge in inflation and a dispute with farmers over an increase in export taxes. "This is a negative development,'' said Cristina Panait, an emerging-market strategist at Los Angeles-based Payden & Rygel, which manages more than $50 billion in assets.[8] BUENOS AIRES, April 25 (Reuters) - Argentine bonds slipped 1.2 percent in early trade on Friday, a day after Economy Minister Martin Lousteau resigned, while the peso dipped to its lowest level since early 2003.[18] BUENOS AIRES, April 25 (Reuters) - The Argentine peso weakened in opening formal interbank trade on Friday after the economy minister resigned, but traders said bonds and stocks could have a muted reaction since the cabinet change was expected.[19]
BUENOS AIRES, Argentina (AP) — Argentina's economy minister has resigned in the first major departure from President Cristina Fernandez's four-month-old administration, a government official said Friday.[16] Argentine President Cristina Kirchner has sacked her economy minister, amid spiralling inflation and her government's bitter conflict with armers over a tax hike on soybean exports.[9]
Lousteau was the architect of a tax hike on soy exports that triggered a three-week strike by the country's farming sector last month. He has been increasingly sidelined and hardly appeared during the talks with farmers, which have instead been led by Cabinet Chief Alberto Fernandez and controversial Domestic Commerce Secretary Guillermo Moreno, the government's price watchdog as it battles inflation.[1] Lousteau's replacement is to be the head of the tax agency, Carlos Fernandez, according to a report in La Nacion newspaper. Speculation had swirled recently that Lousteau, 37, who resigned late Thursday, would depart because he had been the driving force behind a tax hike on soya exports that caused a three-week farmers strike last month, had clashed with Domestic Commerce Secretary Guillermo Moreno and disagreed with Kirchner on the risk of inflation.[6]
The agency report didn't disclose a reason for Lousteau's resignation. Farmers in Argentina went on strike last month to protest a 44 percent export tax on products such as soybeans and sunflowers. They suspended the strike earlier this month after three weeks.[11] Farmers in Argentina launched a nation-wide strike in the second week of March in protest against an increase in export taxes on soybeans from 35 percent to as much as 45 percent, and the introduction of new duties on other farm exports meant to combat inflation.[20] The minister had become increasingly isolated. He was left out of negotiations with farmers who have been on strike for weeks in protest against export taxes on their products. There was also disagreement with his approach to tackling the country's high inflation.[21]
April 22 (Bloomberg) -- Argentine bonds fell, sending yields over U.S. Treasuries to their widest since 2006, on concern farmers will restart a strike over export taxes imposed by President Cristina Fernandez de Kirchner.[22] BUENOS AIRES (Reuters) - Argentine President Cristina Fernandez on Tuesday called for calm as talks with farm leaders grew more tense, raising expectations in financial markets that farmers might go back on strike.[23] BUENOS AIRES, April 23 (Reuters) - Argentine exports rose 49 percent in the first quarter of the year, representing an increase of $1 billion on the same period of 2007, President Cristina Fernandez said on Wednesday.[24]
Analysts said the appointment would do little to alter the perception that key economic decisions are taken by President Fernandez and Kirchner, who have dismissed traditional monetary policy solutions to inflation. Both have emphasized state intervention and a weak currency to stimulate exports in an economic program that has seen the economy grow more than 8 percent in each of the last five years.[3] Barclays Capital Inc. economists Eduardo Levy-Yeyati and Sebastian Vargas estimate Argentina's actual inflation rate is as high as 25 percent. Kirchner, seeking to drum up support for his wife, said last night that farmers opposing higher taxes on exports of grains and oilseeds are trying to "freeze'' the economy.[8]
Since the election of Kirchner's husband, Nestor, as president in 2003, Argentina has carried out a policy of strict control of the economy. Thanks to higher world prices for such Argentine products as soya, sunflower oil and beef, its economy has been growing nearly as quickly as China's. Cristina Kirchner has continued the economic policies of her husband's administration since she took office in December.[6] Argentina is the world's third-largest exporter of soybeans and a leading exporter of beef, wheat and other grains. Lousteau was one of the few new faces in Fernandez's Cabinet, which includes several returning officials from the administration of her husband, former President Nestor Kirchner.[16] The farmers have threatened to erect new barricades if the government does not offer concessions on the tax hike. It was the biggest crisis faced by Ms Fernandez since she took office in December. Mr Lousteau was one of few new faces in Ms Fernandez's cabinet, with most ministers retained from the administration of her husband, former President Nestor Kirchner.[12]
Martin Lousteau resigned from the cabinet and was replaced by Carlos Fernandez, an economist who is seen as close to President Cristina Fernandez and her husband, ex-President Nestor Kirchner.[19] Carlos Fernandez was named to replace Martin Lousteau, whose resignation shook the young administration of President Cristina Fernandez on Thursday.[17]
Martin Lousteau, center, resigns 4' months into President Cristina Fernandez de Kirchner's administration.[11]
The government's refusal to curb public spending in order to slow economic overheating and inflationary pressures means that there will be no change in policy. This determination to avoid unpopular spending cuts will be strengthened by recent opinion polls that show that approval of both President Cristina Fernandez de Kirchner and her government's performance has fallen dramatically in the four months since she took office, to around 35% or less. The appointment of a new minister with little apparent policy autonomy, seemingly willing to accept the limitations on his influence, tends to confirm this perception.[25] The Telam news agency cites unidentified Economy Ministry sources as saying that the 37-year-old minister submitted his resignation late Thursday. Other news media including the major daily newspapers La Nacion and Clarin are also reporting the resignation. Lousteau was the head of a state-run bank when he was tapped for the economy job by President Cristina Fernandez in December.[26] At 36, Mr Lousteau was the youngest member of President Cristina's Fernandez's cabinet. He also reportedly had run-ins with other ministers over inflation and the direction of the economy.[12]
High inflation has become a major challenge for the government. One of the few new ministers appointed by Cristina Fernandez, the youthful Lousteau stood out in a cabinet dominated by faces from the previous government of her husband.[1]
Economy Minister Martin Lousteau resigned late on Thursday over apparent differences with Fernandez about how to combat inflation in Latin America's No. 3 economy.[3] Argentine Economy Minister Martin Lousteau has resigned over his disputed policies in the agricultural sector that crippled the country.[15]
Argentina's Minister of Economy Martin Lousteau delivers a speech at the government house in Buenos Aires in this March 31, 2008 file photo.[14] Argentina's Economy Minister Martin Lousteau's resignation yesterday had been widely predicted and caused no surprise, apart from its timing.[25]
Carlos Fernandez, head of Argentina's tax agency, will replace Lousteau, said an official at the Economy Ministry who declined to be identified by name, citing internal policy.[8] Lousteau was replaced by the former head of Argentina's tax agency chief, Carlos Fernandez, who is considered close to the Argentine leader and her husband.[3] In an interview with the AP early Friday, the official said Argentine tax agency chief Carlos Fernandez is expected to succeed Lousteau.[14]
Reports said that Mr Lousteau, whose resignation has not been officially announced, would be replaced by Carlos Fernandez, head of the country's tax agency.[12] According to newspaper La Nacion, Carlos Fernandez, head of the country's tax agency, will replace Lousteau.[15]
Carlos Fernandez, who specializes in public financing, will be the new economy minister, the agency said.[20] The new minister, who has a degree in economics, has held regional economic posts. Political analyst Rosendo Fraga said the new economy minister the fifth since Nestor Kirchner took office in 2003 is a technocrat unswervingly loyal to Kirchner and the new president and continues their trend of choosing "low-profile economy ministers."[17] "The new minister is former president Kirchner's ally and his appointment indicates there is no immediate intention to turn the country's economic policies in the right direction,'' Panait said.[8]
Mart''n Lousteau was one of the few new ministers in President Christina Kirchner's cabinet, which came to power at the end of last year.[21]
Lousteau's resignation comes as Argentina's government confronts farmers opposed to a new export tax regime announced March 11.[10] Argentina's farmers staged a three-week strike in March over a tax hike on soy exports, but suspended the protest on April 2 for 30 days in order to negotiate with Fernandez's center-left government.[23] On April 2, Argentina's four leading farm groups suspended the strike against a tax hike on soy exports for 30 days to negotiate with the government, but little progress has been made and the protest could resume next week.[24]
The projected date for the resumption of the strike is May 2. Farmers and ag groups staged a three week strike last month, protesting unfair practices by the government, including what they called an unneeded suspension of wheat exports and a controversial sliding scale export tax on soybeans. For their part, Buenos Aires says the moves are necessary to prevent depleting domestic supplies and to keep soybean production from increasing at the expense of other commodities.[27] According to Dow Jones Newswires, talks between Buenos Aires and ag groups were suspended Tuesday, as farmers rejected a proposal by the government over the wheat export sector. The farm groups say that if talks don't resume, they'll resume the strike that stopped exports and led to widespread food shortages, trigging civil unrest in some areas.[27]
We're not willing to accept the government's proposal which leaves grains trade in the hands of five multinational corporations; that's the reason for our proposal which privileges the supply chain and the Argentine consumer", said Eduardo Buzzi president of the Argentine Agrarian Federation and one of the delegates at the round of talks. "We believe farmers, millers and consumers should be involved in the wheat market", he added. As to the round of talks and the fact the one month truce is approaching its May 2 deadline Buzzi said "we're working day by day, point by point; if we can agree on beef, great; if we can agree on wheat, great, that's how we are addressing the round", said Buzzi. Mario Llambías president of the Argentine Rural Confederations said "several conflicting points persist", but "we hope to overcome them tomorrow (Wednesday)". He also admitted he was concerned because if by May 2 there's no agreement, grass-roots are prepared to take to the highways to resume protest. "It's essential that lifting the export ban on beef and grains becomes effective so we can have markets working as they should, but there's a lot of people concerned, if not scared, that if solutions are not reached they must prepare for the worst", he emphasized.[28]
Argentine farmers and government officials couldn't reach an agreement Tuesday on wheat taxes triggering fears of a revival of the three week protests which caused food shortages and a major political challenge to the administration of Cristina Fernandez de Kirchner.[28]
Argentina is too an important country to be left out of international money markets, said U.S. Under Secretary of State for Latinamerica Thomas Shannon following his recent visit to Argentina when he met with President Cristina Fernandez de Kirchner.[29]
Fernandez's office has not made an official announcement. Asked what prompted the resignation, the source said he could not provide additional information. He said the president and top officials were meeting overnight and had designated Argentina's tax chief, Carlos Fernandez, as his successor.[16]
"The growing conflicts and a confrontational policy regarding farmers will deepen economic uncertainty and that will probably be reflected in more drops in President Fernandez's popularity,'' said Rosendo Fraga, a political analyst who runs Nueva Mayoria pollster in Buenos Aires.[10] "We know how much inflation affects income,'' Lousteau said April 22 in a speech in Buenos Aires.[10] Claudio Mauro, an economist at M&S; Consultores in Buenos Aires, said April 10 that annual inflation is closer to 22 percent.[10]
According to the government, Argentine inflation accelerated to 1.1 percent in March from February and to 8.8 percent from the same month a year earlier.[10] Inflation was officially reported as 8.5 percent last year, but private estimates put it at twice that much, and the government has been accused of underreporting the figures.[3]
Economists say the government has been underreporting inflation after Kirchner appointed a political appointee last year to run the institute that compiles the data.[8] Government inflation data has been questioned by opposition leaders, economists and institutions including the International Monetary Fund since Kirchner started replacing personnel at the national statistics institute in January 2007.[10]
Lousteau resigned due to differences over how to handle soaring inflation, which has soured an economic boom. "It isn't good news since (Carlos) Fernandez is the type to give more power to (Domestic Commerce Secretary Guillermo) Moreno. [19] Traders had widely expected Lousteau's exit, but it still caused jitters in opening deals. "It isn't good news since (Carlos) Fernandez is the type to give more power to (Domestic Commerce Secretary Guillermo) Moreno.[18]
Lousteau presented his resignation Thursday afternoon, Argentina's National News Agency the Telam reported, without disclosing the reason for resignation.[20] The yield on Argentina's benchmark 8.28 percent bonds maturing in 2033 jumped 29 basis points, or 0.29 percentage point, to 10.47 percent at 10:48 a.m. in New York, according to composite data compiled by Bloomberg.[10] The extra yield investors demand to own Argentine bonds rather than Treasuries widened 26 basis points, or 0.26 percentage point, to 5.86 percentage points at 4 p.m. in New York, according to JPMorgan's EMBI Plus index.[22] The average spread on emerging-market debt widened 2 basis points to 2.72 percentage points, according to JPMorgan's EMBI Plus index. Brazilian Deputy Treasury Secretary Paulo Valle said the government may sell as much as $500 million of its bonds maturing in 2017 as part of a plan to build benchmark securities that are large enough for investors to trade.[22]
The yield on Argentina's 5.83 percent inflation-linked peso bond due in 2033 surged 28 basis points to 10.47 percent, according to Citigroup Inc.' s unit in Argentina.[8]
On April 18, Argentina was temporarily blocked by a U.S. judge from transferring or selling bonds held in the Depository Trust Co. in New York because of a dispute with noteholders stemming from the country's 2001 default.[22] The ruling by U.S. District Judge Thomas Griesa in New York came in a class-action, or group lawsuit brought by noteholders against Argentina. The 2004 suit claims Argentina broke its contract by failing to pay interest or principal on the republic's 11 percent notes due in October 2006.[22]
The farmers have halted the strike but threatened to erect new highway barricades if the government does not offer concessions on a recent export-tax hike on soybeans and other crops. Farmers say the duties, which are as high as 45 percent, have reduced their profits to a point where they can barely make a living. [16] New strike actions could disrupt exports of meat, grains and oilseeds and produce further domestic food shortages and price rises. Agricultural organisations are complaining about the threatening attitude of the government's internal commerce secretary, Guillermo Moreno, who has invoked 30-year-old laws that could lead to the jailing of those who fail to keep up domestic supplies.[7] Argentina's trade balance data for March is due to be released on Thursday at about 4 p.m. local time (1900 GMT), and economic analysts expect the trade surplus to be affected by a three-week farm strike in March that disrupted the country's key grains exports.[24] Lousteau was the architect of a tax hike on soy exports that triggered a three-week strike by the country's farming sector last month.[15]
A three-week strike by farmers that began last month led to road blockades and shortages of beef and dairy products across the country. Farm leaders said this week that there has been little progress in talks ahead of a May 2 deadline to resume protests.[10] Following the three weeks strike farm groups agreed to spend April in talks with the government but leaders have repeatedly complained of a lack of progress raising expectations that protests could start up again.[28]
Strike leader Luciano Miguens told Argentine television some progress had been made in talks with the government but that Lousteau's departure creates "an uncertain stage" at a delicate time.[16] On Tuesday Argentine stocks and bonds fell and the local currency, the Peso, slumped to a six month low on investors fears that stagnated talks could lead to a resumption of the camp strike.[28]
Argentine farmers may resume a nationwide protest on May 2 because there's been little progress in talks with the government to repeal the tax, the leader of the nation's biggest agricultural group said yesterday.[22] During the nationwide protest at hundreds of locations, the farmers and their supporters blocked more than 400 roads. They were demanding the government repeal the tax, which was implemented March 11. CNN's Carolina Cayazzo contributed to this report.[11]
The 30-day 'truce' declared by striking agricultural organisations at the beginning of April expires on Friday, and the failure of the government and the sector to resolve differences over export tax increases raises the prospect of new protests and roadblocks.[7] Striking farmers last month placed roadblocks across the country to protest the export taxes, sparking shortages of beef, poultry and other products.[22] "There was a need of a change,'' said Silvia Marengo, who manages $130 million of emerging-market bonds at Clariden Bank, in a telephone interview from London. "It's terrible that the conflict with the farmers is making the country lose a big opportunity to boost exports amidst high international prices of commodities.''[10] The country's gross domestic product has grown more than 8.5 percent in each of the past five years following the country's default on $95 billion of bonds in 2001.[8]
"Compared with the (same) quarter a year earlier, we've increased the positive export margin in the trade balance by $1 billion," Fernandez said in a televised speech. Exports in the first three months of 2007 totaled $11.15 billion, while sales abroad reached $10.83 billion in the first two months of this year. They rose 45 percent in February and 67 percent in January.[24] "We're going to carry on negotiating until May 2. We're going to exhaust all avenues, but people are very annoyed and they're already thinking about taking some kind of measure from May 2," he added. The FAA was one of four agricultural associations that led the strike, which disrupted the country's key grains exports, emptied meat counters and landed Fernandez with her biggest crisis since she took office in December.[23] The failure to make serious progress on resolving the export tax dispute points to renewed strike action, although sector organisations are considering alternative methods less likely to undermine public support.[25] The 30-day 'truce' declared by the agriculture sector, following three weeks of damaging strikes and roadblocks that halted exports and left major cities without food supplies, will come to an end on May 2.[25]
After the 21-day strike, confidence in Cristina Fernandez's government fell 7 percent from the previous month and 19 percent from April 2007, according to a poll released yesterday by Torcuato Di Tella University. [10] Tuesday, April 22, 2008, 4:08 PM by John Perkins Argentina's farm strike could resume as negotiations between the government and the agricultural sector have ceased.[27]
Much of the country's farm products are exported to the United States, China, and Europe. The official demanded that the Dalai Lama must stop activities aimed at splitting China, such as plotting and inciting violence and disrupting and sabotaging the Beijing Olympic Games, so as to create conditions for talks. Although the Dalai Lama's spokesman Tenzin Takla welcomed the offer of talks, he said he has received no official notification from the Chinese government of its desire to meet Tibet's spiritual leader, the BBC reported.[20]
As well as trying to tackle the inflation issue, Lousteau sought to advance talks on how to restructure Argentina's $6.3 billion debt with the Paris Club group of wealthy nations.[15] Argentina's booming economy has unleashed inflation, and Argentines are increasingly complaining about rising prices.[3] Argentina's economy has grown at rates above 8 percent in each of the last five years since a devastating crisis in 2001-2002.[1]
The yield has risen 4.70 percentage points since June 4, 2007. Argentina's peso has declined 0.4 percent this week, its fifth weekly drop in the past six. It was little changed today, rising 0.1 percent to 3.1815 per dollar.[8]
Annual inflation quickened to 8.8 percent last month, according to government figures. [8] The government's official annual inflation rate last year was 8.5 per cent, but independent institutions accused the government, and foremost Moreno, of altering the way inflation was calculated. They put the actual inflation rate at 20 to 26 per cent.[6]
With the simmering agricultural dispute over export taxes set to be renewed, it was assumed that the government would seek to defer cabinet changes in order to avoid the perception that it had caved in to pressure from the farm sector. [25] Approval of Fernandez de Kirchner and her government has fallen dramatically in the four months since she took office.[25] The 37 year-old minister had been recently isolated in tense negotiations between the government and the country's disgruntled farmers.[15] The farmers' strike led to food shortages in the country as farmers blocked trucks from delivering beef, chicken and produce.[12] South America's second-largest economy has been rocked recently by the strike, which caused widespread shortages when farmers blocked trucks from delivering beef, chicken and produce.[16]
SOURCES
1. Reuters.com
2. Reuters.com
3. New Argentine econ chief seen close to president | Markets | Bonds News | Reuters
4. The Associated Press: Report: Argentine economy minister resigning
5. Argentine economy minister fired - govt official | Latest News | News | Hemscott
6. Argentine economic minister forced out over strike, policy disputes : World
7. The World Next Week - Argentina: strike and stalemate
8. Bloomberg.com: Latin America
9. Argentine economy minister fired amid spiralling inflation
10. Bloomberg.com: Latin America
11. Argentina's economy minister steps down - CNN.com
12. BBC NEWS | Business | Argentina's economy chief quits
13. Argentine economy minister resigns: Government source- International Business-News-The Economic Times
14. The Associated Press: Official: Argentine economy minister resigning
15. Press TV - Argentine economy minister resigns
16. The Associated Press: Official: Argentine economy minister out
17. New Argentine economy minister says no changes planned - International Herald Tribune
18. Argentine markets fall after econ minister's exit | Markets | Bonds News | Reuters
19. Argentine mkt reaction to Lousteau exit seen muted | Markets | Bonds News | Reuters
20. RTTNews - Political News and Chatter, World Political News, Forex News, Earnings Revisions .
21. Latest News - Radio Netherlands Worldwide - English
22. Bloomberg.com: Latin America
23. Argentine farm talks stall as deadline nears | International | Reuters
24. UPDATE 1-Argentine Q1 exports rise 49 percent - president | Markets | Markets News | Reuters
25. The World Next Week - Talking Point - Argentina: cabinet chaos
26. Reports: Argentine economy minister is resigning - International Herald Tribune
27. Brownfield Network: Farm strike in Argentina could resume soon
28. Mercopress
29. Mercopress
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