Wednesday, 7 January 2009

Earlybird, Jan. 7, 2009

Newspaper headlines for Jan. 7, 2009

  • BRAZIL -- Lula's Oil Self-Sufficiency Seems to Be Nothing Else But a Mirage (Estado): According to this Estado editorial column, oi self-sufficiency in Brazil is lies, lies, lies. Brazilians spend more buying fuels from abroad than what they earn with exports of oil. This also means that Petrobras is failing to meet any of the production goals imposed by the government. Shares of Petrobras are lagging behind alongside most of its industry peers, of course, but there is also an element of investor's lack of confidence about the quality of its management.

  • U.S. -- Fed Seeks Revival of Inflation Targetting System Discussions (Bloomberg): The main concern is running out of policy options to fight deflation at a moment when the economy's recession seems it will be more severe than initially thought. By setting an open, explicit goal for price increases, the Fed would adopt a measure used in other developed economies to anchor policy and build credibility with the public.

  • BRAZIL -- Pasta Maker J. Macedo Buys Rival, Signaling Corporate Consolidation Efforts Amid Crisis (Valor): Brazilian pasta maker J. Macedo paid an undisclosed amount to buy its rival Chiarini. The transaction will give J. Macedo more expressive participation in the state of Minas Gerais, the third largest in Brazil and where Chiarini is based. Remember that J. Macedo sold local debt in Oct. 2007 to pay for new acquisitions and restructure some old debts. Readers might not have access to this link.

  • COLOMBIA -- Tiempo Column Urges for Fuel Price Reductions (Tiempo): What the Uribe administration is doing, the editorial says, is using free market principles to take advantage of citizens and companies saddled with very high fuel costs. It shows the government's lack of interest towards the citizen's finances. Nice read, worth spending some time thinking about the message.

  • U.S. -- Obama Sees Budget Gap Reaching $1 Trillion (Reuters): Well, we expect that the economic salvage package maintains its focus.

  • PERU -- Curious Anti-Crisis Plan Implemented in Peru (Comercio): According to the newspaper, cabinet ministers will have to meet every 15 days to inform of the degree of progress in their ministries' most important programmes. This comes one day after ministers decided to shrug off a two-digit increase in their salaries (during times of crisis!!!) We'll see how the plan goes ...

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