Rumor has it that President Christina Fernandez de Kirchner and her administration plan to keep wage hikes below 18%. Many, however, are saying that this simply isn’t true. As Omar Plaini said, no “government official” has admitted to this. As he said, “I’ve never heard that figure. The only authorized voices are that of the…
Investment & Market News
Protests Surrounding Subway Fee Hikes
There has been great controversy surrounding the recent subway tariff hikes, as Mayor Mauricio Macri recently applied a 127% hike on subway prices. As a result, union, social, political and student organizations have been going crazy filing requests for legal protection against the subway fare. City Judge Fernando Juan Lima just rejected their plea. These…
Financial and Social Problem with Street Peddlers
Street peddlers have been a large problem in Buenos Aires for years, and recently they clashed with city government inspectors. In addition to making the streets appear sloppy and disorganized, the peddlers are pushing cheap imitations of consumer products, creating issues for higher end businesses. This week, tensions mounted as many of the street vendors…
Grocery Sales Up in 2011
People are either hungrier today than they were a year ago, or finding more money with which to pay for groceries. Calves Consultancy, a private company, carried out a recent study to see how supermarkets in Argentina did this past year. They concluded that supermarkets actually had sales that were 25% higher in 2011 than…
Argentina Shutting Door on Apple, RIM and Others
Both Apple and Research In Motion (RIM) have received large blows as Argentina has temporarily banned the sales and imports of all phones made outside of the country. Nokia, Samsung, LG and Motorola all have plants inside the country, so they are safe for now. Apple and RIM, however, will now have to decide whether…
News
Printing Press Controversy in Argentina
Some say it’s a book hostage – others say it’s a way to protect yourself in a difficult economy. Either way, more than a million imported books are sitting in customs, waiting for authorization to come into Argentina. The controversy surrounding these books involves Argentina trying to watch its back…or so some are saying. Clarin…
Trade Between China and Argentina
Many companies and countries have their eyes turned to China for investment opportunities – and Argentina is no exception. Recently, Argentina’s foreign minister Hector Timerman put together a large delegation that traveled to China. While there, they met with China’s counterpart, Yang Jiechi and with Vice President Xi Jinping. China has been trying to expand…
Ford Argentina Balancing Imports with Exports
In recent news, Ford Argentina is one of the latest carmakers to sign an agreement with the government to boost their exports to compensate for increased imports. Although there are soaring demands for imports, the government is trying to balance this against exports. Ford has agreed to boost its exports to $90 million by 2012,…
Minimum Wage Changes for Argentina
President Cristina Fernandez de Kirchner came under attack this week for her stance on minimum wage. Last week, the Minimum Wage Council that was formed by the country’s main union and business leaders and Government officials came to an agreement on minimum wage. They agreed to a 25% hike for minimum wage. Prior to the…
Moody’s Rating Change
In recent news, Moody’s Investors Service has just lowered its outlook for Argentina’s banking system. They’ve changed the status from stable to negative, and cited three main reasons for doing so. 1. They cited that the bank system earnings are ever-increasingly dependent on favorable, but unsustainable government policies. 2. They cited the bank’s vulnerability to…