CHILE — The Chilean economy can not catch a break. With the decrease in Chinese consumption, Chile’s biggest copper customer, the price of the red metal continues to drop. The International Monetary Fund (IMF) says that the European Union will need to continue “money printing” in light of “near-term growth” being subdued.
The Chilean IPSA stock index dropped Monday to 3,793, approaching its 52-week low, which is off by 1.49 percent year-to-date and 3.20 percent over the last twelve months.
Many of the larger capitalized companies are at or near 52-week lows such as Concha y Toro, Cencosud, SQM, Banco Santander Chile and LAN, which are down to share prices not seen since September 2006, almost ten-years ago.
The peso also continues to fall, now 8-straight days, to close at the ominous CL$666 against the dollar, down 0.76 percent. It traded as low as CL$667, levels not seen since on December 9, 2008 when it traded at CL$669.
The IMF is looking for the Euro Zone to grow just 1.5 percent in 2015 and edge up to just 1.7 percent in 2016, with inflation around 1.1 percent. They warned however that “a chronic lack of demand, impaired corporate and bank balance sheets, and weak productivity continue to hold back employment and investment.”
Copper prices are also down as are most global commodities and concerns are being expressed in regard to the effect on the Chilean government’s budget and the costly reforms being implemented.
Government owned CODELCO is a large part of their revenues and with copper getting close to its production cost level there will not be much in the way of profits for the government.
And to pile-on even more; with the peso lower, exports are cheaper and more competitive (except for copper which is priced in dollars),and Chilean salmon is now on the outs at Costco due to too many antibiotics.
CHILE — The Chilean economy can not catch a break. With the decrease in Chinese consumption, Chile’s biggest copper customer, the price of the red metal continues to drop. The International Monetary Fund (IMF) says that the European Union will need to continue “money printing” in light of “near-term growth” being subdued.The Chilean IPSA stock index dropped Monday to 3,793, approaching its 52-week low, which is off by 1.49 percent year-to-date and 3.20 percent over the last twelve months.Many of the larger capitalized companies are at or near 52-week lows such as Concha y Toro, Cencosud, SQM, Banco Santander Chile and LAN, which are down to share prices not seen since September 2006, almost ten-years ago.The peso also continues to fall, now 8-straight days, to close at the ominous CL$666 against the dollar, down 0.76 percent. It traded as low as CL$667, levels not seen since on December 9, 2008 when it traded at CL$669.The IMF is looking for the Euro Zone to grow just 1.5 percent in 2015 and edge up to just 1.7 percent in 2016, with inflation around 1.1 percent. They warned however that “a chronic lack of demand, impaired corporate and bank balance sheets, and weak productivity continue to hold back employment and investment.”Copper prices are also down as are most global commodities and concerns are being expressed in regard to the effect on the Chilean government’s budget and the costly reforms being implemented.Government owned CODELCO is a large part of their revenues and with copper getting close to its production cost level there will not be much in the way of profits for the government.And to pile-on even more; with the peso lower, exports are cheaper and more competitive (except for copper which is priced in dollars),and Chilean salmon is now on the outs at Costco due to too many antibiotics.
การแปล กรุณารอสักครู่..