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.
International investment in the second quarter of this year reached $330.02 billion, according to data from the National Institute of Statistics (Indec). Of that total, $228.26 billion correspond to 'Other investments', which represent the total savings that Argentines have outside the local banking system. This, for example, includes funds that citizens with local residence have in bank accounts in the United States, Spain, Brazil, Uruguay or any other country.
Argentina's Central Bank said that it would allow a managed float of the peso currency and abandon its current "uniform daily devaluation" strategy. The move comes with the gap between the official exchange rate and the exchange rate quoted in the country's informal currency markets close to 93% due to the distrust of investors and strong black market demand for dollars.
In September, grain exporters sold off $1.787 billion, 14% less than in the same month in 2019, according to a report by the Argentine Oil Industry Chamber (Ciara) and the Center of Grain Exporters (CEC). In the first nine months of this year, exports reached $15.133 billion, 12.68% less than in the same period in 2019.
Argentina has temporarily cut soybean, soymeal and soyoil export taxes by 3 percentage points to 30% to help stimulate export revenue, as the country struggles with recession and dwindling foreign reserves. The tax cut will last until the end of the year before being restored to 33% in January. “We seek to strengthen the country’s international reserves,” Economy Minister Martin Guzman said in a televised address.
Google will pay publishers $1 billion over the next three years for their content, the company's latest effort to defuse tensions over its dominance of the news industry. The company said that it has signed agreements for its news partnership program with nearly 200 publications in Germany, Brazil, Argentina, Canada, the U.K. and Australia.