Investors are giving up on Argentina just weeks after it pulled off a $65 billion restructuring. The country’s overseas bonds have plummeted more than 20% since early September, the world’s biggest drop in that span. Morgan Stanley calls it the worst rout in the aftermath of a restructuring in at least 20 years, and it comes despite the nation winning a whopping $38 billion of debt relief from creditors.
Argentina’s President Alberto Fernández has launched a three-year promotion plan for Argentine gas production. The plan is aimed at encouraging investments, boosting domestic production from the Vaca Muerta shale play to satisfy local demand, replace imports and support employment. The government hopes an investment of $5 billion to replace 18 billion cubic meters (Bcm) of imported gas with domestic production.
In the first three-quarters of this year Argentina's wine sector boosted its exports by 40.57 percent as against the same period in 2019 with record shipments of over 20 million litres, as registered by the Instituto Nacional de Vitivinicultura.
Danone, whose turnover dropped 9.3 percent in the third quarter of the year, has announced a review of its strategy in Argentina. Company CEO Cecile Cabanis said that in order to align with the profitable growth agenda of between three percent and five percent, the group announced the launch of a complete strategic review, beginning with an immediate review of its strategic options in Argentina and for the Vega brand [in the United States], whose combined sales represent around 500 million euros ($585 million).
Gene-edited wheat is to be grown in Argentina, as the country becomes the first in the world to give the green light on the use of the drought-resistant crop. The genetically modified variety flourishes under dry conditions, providing hope for Latin America's largest wheat producer, which has struggled with on-going water stress in recent years.
The oil company YPF announced tonight a new increase, of 3.5% on average, in fuels. The company said the "price update" is due to "increased taxes and biofuels. So far this year, the oil company has raised prices three times, with an accumulated increase of about 12%.
The Spanish supermarket company, Dia, achieved net sales in Argentina with an annual growth of 17.3%, reaching a value of 181.3 million euros ($ 212 mn) in the third quarter of 2020.
Volkswagen has just signed a contract for the period 2021-2025 to export some 400,000 additional units of the gearboxes it produces in Córdoba. That will represent revenues of some $300 million. Also, due to the strong demand of pickups in the domestic market, the company will reopen next week the second shift of production in the General Pacheco plant of Buenos Aires, so that around 1,000 workers will return to the activity.
Against the backdrop of a deep economic crisis, the number of registered private-sector employees fell by 4.9% year-on-year in July, equivalent to a loss of 302,500 jobs compared to the same month in 2019. In the industry, in particular, employment fell 2.5% year-on-year but rose in the monthly comparison.
The INDEC reported that the number of jobs lost nationally during the first three months of the pandemic and the quarantine reached 3,757,000, a drop of 18%. All types of work were affected, but with greater force hit the "black" and self-employed workers also informal.