The industry grew 11.4%, driven by autos and metals

Is the increase in first quarter, in contrast, lowered the food and beverage sector

 

Manufacturing activity registered a rise of 11.4 percent in the first quarter, according to a report from the Center for the Study of the Union Industrial Argentina (UIA).
The increase is focused on the automotive and metals.

In March, the increase was 12.8 percent versus the same month of 2009.

"The industry continued to exhibit signs of recovery during the month of March," the report of the UIA, which also notes that "The first quarter ended with a growth of 11.4 percent."

The CEU of the entity that presides Hector Mendez said that "the strong inter-annual growth recorded since December 2009 should be read bearing in mind that the quantities produced in the months to serve as a basis for comparison were the hardest hit by the crisis."

"The severity of the impact that production fronted shows to see that only after five months of expansion recorded amounts are reached 2008 levels," said the study.
The UIA report added that "once again highlighted the contributions of the automotive and steel industry."
Recovery

Both items, detailed the CEU, "experience a recovery path since the second half of last year."

"In March the automotive industry ranked by 39 percent over the same month of 2009, while basic metals production registered a rise of 61.1 percent," the report added.
If you do not take into account the automotive and metals, according to the report, "the rest of the industrial blocks verified in March an annual variation of 5.6 percent.
In particular, in March highlighted the evolution of non-metallic minerals, chemicals and paper and cardboard.

The other sectors, said the manufacturing entity, "also showed increases, with the exception of food and beverage industry, which again showed a negative change, albeit to a lesser extent than in previous months."
Smaller drop

This softening of the decline was because "the decline in oil milling was lower, a trend that is expected to continue in the future, given the expected better harvest and also because" there were rises in subsectors such as red meat, poultry , and in beverages and soft drinks, among others, "the report said.

"Although this figure is below the aggregate 12.8 percent in March, the trend is positive and gradually increasing," continues the study of the UIA.
For its part, the seasonally adjusted monthly change showed an increase of 0.2 percent over last February, moderating its expansion after the ups and downs of the first two

months due to holiday breaks and stops for plant maintenance in the automotive and steel .

12.8%
Growth
The percentage of increase of level of industrial activity in March. From February, the rise was 0.2 percen

There was euphoria in the markets, the impending debt exchange offer

Two days of submission of the proposal, posted strong gains in bonds, the coupons tied to GDP rose to nearly 8%, due to low oil prices, the Merval fell 0.1%

Encouraged by expectations about the upcoming release of debt in default, the local market showed strong rises in the prices of the bonds. The euphoria among investors, just two days of launch conditions of the offer of government bonds led to a profit of almost 8 percent.

Meanwhile, the fall in international oil prices, are negotiated on $ 84 a barrel, down from U.S. $ 0.6 on Friday, the Merval marred the day, which gave a slight 0.07 percent. The main index of the Buenos Aires Stock Exchange ended the day at 2486.01 points, with just 44 million dollars of trading volume

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Amid criticism from economists for what they consider a more than generous offer of the Government ("There's a party in the financial sector, because the supply is extremely favorable to outsiders and not the country," said Roberto Lavagna), which grew the most were the coupons linked to the progress of the economy.

 
The coupon GDP climbed 7.55% in its alternative in Argentina under legislation pesos, dollar 4.68% laws of New York and 6.67% in dollars local laws. The rise of this coupon has been very rapid in recent weeks. The variable weights has a jump of 15.64% in the first six rounds of April, a performance 34.34% is added to the accumulated through March.

The Discount in pesos, the principal bond debt exchange, rose 0.90% today, a difference that is stretched to 2.11% in the month and added to the cumulative 22.82% in March. Meanwhile, Argentina's country risk, which measures the rate differential between domestic bonds and similar U.S. Treasury, gave 7 points to 619 units.
Increases were registered in an international environment favorable for the adoption of an emergency aid plan for Greece, which for now calm the minds of investors and revive the interest in risk markets.

Merval, down. Buenos Aires's main index, the Merval fell on a par with the drop in international oil prices, the weak dollar and high inventories in the United States.
Among the 15 leading shares, which lost more than were those of Petrobras (-2.88 percent), Petrobras Energia (-1.79) and Aluar (-1.27). By contrast, closed with a positive sign papers Grupo Financiero Galicia (+2,07 percent), Banco Hipotecario (+1,84) and Banco Patagonia (+1,69).

Moreover, in the currency market, the price of U.S. dollar remained stable today and closed at 3.86 pesos to 3.89 pesos to purchase and sale.

 
A critical view. Lavagna said today that "there's a party in the financial sector, because the offer [for payment of debt] extremely friendly to outsiders and not the country."
Speaking to DyN, after a lunch with former President Eduardo Duhalde in a restaurant in Puerto Madero, the former finance minister also said that the Government not only has a program to combat inflation, but not even recognized as a problem , "which is very serious," he said.

Lavagna also criticized the offer of payment of debt taken by the national government is the result of a proposal coming from abroad because "strategic issues must not be defined on tips that come from abroad", and "always ends up covering the interests of foreign and not the country. "

U.S. Approves the exchange offer of Argentina's debt

Boudou said the SEC gave its approval to the Government, today presented the details of the proposal

CANCUN, Mexico .- The storm yesterday dyed paradisiacal landscape of Cancun. However, the economy minister, Amado Boudou, and his team found it hard to hide the joy. Because, according to La Nacion Boudou relied on Friday, the Securities and Exchange Commission (SEC, for its acronym in English) finally approved to Argentina's debt exchange offer for holdouts, the most important step before the final release of the proposal.

The industry grew 6% in January

A report confirms the revival UIA

Factory activity is in clear recovery, although still considerably below levels two years ago. This is shown by the monthly report of the Union Industrial Argentina (UIA), which was released yesterday and shows a rise of 6% in January in connection with the same month of 2009.

 
The rebound is a fact, but with mitigating circumstances. On the one hand, says the study, part of the scale of the figure is because the volumes are contrasted with months of very low activity. "The strong inter-annual growth recorded in January and December should be read bearing in mind that while there is a trend of recovery, the quantities produced in the months that are the basis of comparison (in January 2009 and December 2008) were fully the impact of the crisis, "he says. The other objection is that the level of production is still, as the UIA, at levels 4.4% lower than those recorded two years ago, in January 2008.

The numbers are not so encouraging when compared with December: in this case, the report notes a decline of 6.2%. "He stressed the impact of holiday breaks and stops for plant maintenance in the automotive and steel," says the text. In fact, although both sectors showed significant increases against January 2009, the quantities produced were respectively 50.8 % and 29.9% lower than last month [in December]. "

The automotive sector was again, then, the great promoter of the activity: it increased by 68.8% and reached a production of 31,602 vehicles. "The reactivation is mainly associated with the surge in exports, anchored to the dynamism of the Brazilian automotive market," said the UIA.

Machines at full
Another reason for the improvement was significant production machinery. According to the Metal Industries Association of Argentina (Adimra) cited by the UIA, the manufacture of such products introduced a year increase of 14%. "This positive scenario was due, in addition to the aforementioned recovery of the steel industry and the automotive sector, the rebound in the metalworking industry, where he confirmed signs of reversing the sharp drop seen since early last year, showing the second growth year in 11 months-added work. He also accompanied the sustained improvement in textiles, expanding for the fifth straight time after 14 months of decline, paper and cardboard (fifth year increase in 6 months) and editing and printing. For its part Other blocks, such as chemicals and chemical products (2.1%), nonmetallic minerals (5.7%) and rubber and plastic (4.2%), while sustaining positive changes, moderated the rate of increase. "

The downside was the food and beverages sector which, according to the UIA, "deepened its annual retreat on account of lower production in oil and grinding meat. In January, the report said, were lower than 20%. "This fall, he added, is explained by the strong impact that had, in January and the second half of last year, the shrinkage of the oil industry (particularly soybeans, which represents 92% of the milling total), the product of raw material shortages due to the drought and restrictions on temporary import for processing oilseeds. "

Opinion

Normally I only public news without personal opinions, but today I wanted to comment on the economic situation in Argentina, especially referring to inflation.

By definition, inflation is the general rise of prices throughout the economy, not what at least I can see.

As for an example, while some retailers up their prices indiscriminately, the more typical case is that of vegetables, other retailers maintain the same price forever.

It is well known that in the case of vegetables, the sale price of a kilo of any product is at least equal to the price of the box.

That is, if a small business, is financially able to maintain selling prices, a few blocks from the large hypermarkets in general who are increasing their prices, means that Hypermarkets, taking advantage of its dominant position, not only reduce their costs by buying in bulk, but also benefit from a price increase without justification relying exclusively on inflation expectations.

For clarity, I can assure you all, but most of the price increases have only support in inflationary expectations rather than an actual increase in costs.

Is this the reason that since the government is trying to curb inflationary expectations and do not change economic policies, which generally tend to maintain economic stability despite global financial turbulence.

It is very sad for me to see some of my compatriots trying to destabilize a democratically elected government, supported by the lack of economic knowledge that is ordinary citizens, citing false economic theories, or arguing only complaints that far from providing the solutions that claim, further confuse the public fueling inflationary expectations are very dangerous for any economy of any country, developed or not.

These pundits, often very famous, but very few real successes, seems to not understand that their comments are fueling a vicious machinery of impoverishment and marginalization that eventually will reach them somehow.

They act as if they lived, not just another country but another planet, off the streets, shops, hospitals, etc.. They seem to think that when they leave their luxury cars to dinner at fancy restaurants too, anything that can cause touch.

A small example, if poverty that generate sparks a epidemic of dengue in the head who can enter the insect transmits the disease is going to ask what their economic status before chopping.

Another example, if the waiter who serves you at your luxurious restaurant, contracted a communicable disease as aerial, product of the poor conditions of living, how can these "gentlemen" to prevent the approach to take the order of contagion?

In closing, the attitude taken by these 'gentlemen', far from seeming appropriate or decent looks more like the words of a madman who does not notice the damage that his actions could cause, or mercenaries under the orders of robber barons who can not look beyond the immediate economic benefits, although the medium to long term representing his own ruin and unfortunately the rest of us.

"The Bicentennial Fund was not the product of a hot afternoon," said President

At a business lunch at Olives, defended the controversial government initiative and stressed the figures of the country in the year of the crisis, "The key agreement is the need for a strong domestic market," he said, the UIA demanded for access credit

President Cristina Kirchner held a meeting with businessmen most influential country in the Quinta de Olivos, in an attempt to set a working agenda with the industry.

Shortly after 1330, the President began a presentation to the contractors invited in which he highlighted the figures of 2009. "Fortunately, not what everybody thought," he said.

In a passage of his long speech explaining that the creation of the Bicentennial Fund "was not the product of a hot afternoon," but "has to do with functions that have to comply with the reserves and monetary stability is achieved.

After a review of public accounts, the President tried to show employers that this country is a fertile ground for investment, and that "there will be more meetings" from which took place today.

The president also stressed the basis of a possible point of meeting with businessmen, according to his definition: "The key to that is we have an agreement on the need for a strong domestic market, so also you can sell. "

In that coincided President of the UIA, Hector Mendez, leaving the meeting, but made a difference with the Government on the weight of labor costs and access to credit.
And theorized: "Without customers there is no capitalism. Preotegida And an offer was one of the keys to the year 2009".

"In the year of greatest crisis in the world we still have growth of 0.9%. Without the period 2003-2008 would have been impossible to overcome the crisis as we did in 2009," he said.

The Government yesterday waiting for more than 80 entrepreneurs, including Jorge Brito, Luis Pagani, Eduardo Elsztain, Enrique and Sebastian Eskenazi, Eduardo Eurnekian, Aldo Roggio, Carlos Bulgheroni, Alfredo Coto, Gerardo Werthein, Viktor Klima, Eduardo Costantini and Marcelo Mindlin . Also attending Carlos de la Vega, Argentina Chamber of Commerce, and Cristiano Rattazzi, UIA.

There was no agreement and the opposition takes control of the Senate

The negotiations failed and the distribution of power is defined in the afternoon session

Unless an unforeseen last-minute, kirchnerismo lose control today of the 25 standing committees of the Senate, and also various bicameral, at the hands of a coalition of 37 non-government legislators. Thus, this sector will be key to the operation of a camera that he intended to use Government House as a bastion of resistance to the advance of the opposition in the House of Representatives.

The new distribution of power will emerge today from the preparatory meeting, scheduled for 15, governed for the next two years until the end of term of Cristina Kirchner.
The intention is to block kirchnerista not impose by force of votes in the preparatory meeting minutes which includes the agreement that are discussing for two weeks and, until last night, still had all the signatures.

The only section missing is that of Senator Carlos Menem (La Rioja). Spokesmen for the former president asserted that the record Rioja sign today and will join the opposition bloc.

According to the document, the ruling will have seven members, a total of 15 in each of the standing committees. In other words, will not have enough signatures to get majority opinion.

Moreover, the ruling bloc will not preside over the 25 commissions, 13, leaving the remainder, including management considerations in the hands of a Senator Kirchner. The change in the balance of power in the Senate puts the ruling party in a disadvantageous situation clearly for the first time since the arrival of the Kirchner government in 2003.
The highest office

For now, the Pink House may set the name of the provisional president of the body, an important post, since it is the second stage in the presidential line of succession if headless, for the Buenos Aires Jose Pampuro.

However, dissident Peronism continued to insist last night in that chair to impose Salta Juan Carlos Romero or, failing that, keep the vice-chairmanship of the body, which is reserved for the radical Juan Carlos Marino (La Pampa).

Negotiations will continue this morning, although last night the leader of the Radical bloc, Gerardo Morales (Jujuy), confirmed that his party will respect the parliamentary tradition and support the continuity of Pampuro.

The mechanics of defining the session will end at noon. This was the agreement reached yesterday at a meeting of parliamentary work.
It appears that if no consensus, the new scheme of fees shall be settled by the votes. In that case, the proposal will claim the majority Kirchner, ie eight members, management fees, which are considered key. These are the Budget and Finance, Constitutional Affairs, Agreements, Defense and Foreign Affairs.

This would not be accepted by non-government conglomerate, protected by the 37 votes, plus one half of the total body, which already has consolidated for this vote.
According to the agreed order yesterday in parliamentary work, the preparatory meeting will begin with the swearing of the Cordovan Norma Morandini (Civic and Social Front) on his bench, which was postponed last December 10 because the journalist was traveling in the outside.

The ruling holds that will not prevent the swearing-Morandini, so it's going to make a quorum to start the session. In the UCR warned yesterday that there are no impediments to Cordoba lawmaker can take his seat, even though the site only has 36 senators sitting. "She can make a quorum because the title has already been approved and is a senator of the Nation," Morales said.