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Peru’s Stocks Fall for a Sixth Day on Concern Growth to Slow With Humala
Excerpts:
Excerpts:
“The signs the government’s been giving haven’t been very encouraging, which is why investors are in wait-and-see mode,” Arispe said. “Investors like market-friendly people and Humala isn’t free-market.”
Humala, who takes office July 28, will expand government- run companies including Petroleos del Peru SA, Vice President- elect Marisol Espinoza said yesterday in an interview with Lima- based newspaper El Comercio.
Read more from Bloomberg
Humala, who takes office July 28, will expand government- run companies including Petroleos del Peru SA, Vice President- elect Marisol Espinoza said yesterday in an interview with Lima- based newspaper El Comercio.
Read more from Bloomberg
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Peru's president blames deadly clashes on 'dark political interests'
Excerpts:
Cabinet chief Rosario Fernandez said, while she regretted the deaths of the protesters in Puno, she said the government would act as needed to restore peace.
The mining of metals is one of Peru's leading industries, and a major revenue source for Peruvian departments with such natural resources.
According to the mine ministry, Puno receives 700 million soles ($250 million) annually from the government, of which about 40% is from mining royalties.
The canceling of the Santa Ana mine could cost Puno some 25 million soles ($9 million) in royalties, Gala said.
The mining of metals is one of Peru's leading industries, and a major revenue source for Peruvian departments with such natural resources.
According to the mine ministry, Puno receives 700 million soles ($250 million) annually from the government, of which about 40% is from mining royalties.
The canceling of the Santa Ana mine could cost Puno some 25 million soles ($9 million) in royalties, Gala said.
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Peru's Airport Siege: A Bad Omen for the New President
Excerpts:
The losses from the series of strikes and shut-downs is estimated at close to $100 million and, apart from the violence, are sending shudders through an economy already nervous about Humala's left-leaning proclivities.
Humala, for his part, has refused demands from members of García's APRA party that he get involved in the conflict. "I call on the central government and leaders in Puno to put aside violent actions and look for a peaceful solution," Humala said on Saturday even as he refused to get into the direct negotiations with any party in the Puno conflict. Most analysts agree that any solution reached between the García government and the protesters will likely be temporary; and that Humala will inherit the mess upon his inauguration, facing intense pressure not only from the protesters but from corporations, both local and global, with huge investments in Peru.
Rolando Luque, of the Peruvian government's human rights ombudsman's office says such conflicts will likely increase when Humala takes office, with Peruvians expecting him to make good on campaign promises to better distribute the wealth generated by the country's decade-long economic boom. "We are talking about economic growth between 6% and 10% annually for the past few years, which has created expectation in the population," says Luque.
Hernando de Soto, Peru's best known economist, told TIME in an interview several weeks earlier that his Democracy and Liberty Institute estimates around 1,000 social conflicts simmering in the country.
Read more from Time
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You may also find this article from "Living in Peru" useful:
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Opinion from Peru-N-English
In reading these four articles (above) I was reminded of some investment advice that I have been given repeatedly. I suppose like everyone, I have been given lots of advice. Some good and some not so good. And, I would never presume to tell others what to do. But these two pieces of advice, that would seem to apply here in Perú, I have found to be consistently very good for me.
1. When one of the companies you are investing in has a change of leadership, “SELL!”
2. Know the leadership and history of a company’s management before you invest. You are investing as much (or more), in the leadership’s integrity, as you are in their company's resources. No matter how good the company’s past performance, if you don’t like, trust and respect the management, “DO NOT BUY!!”
I suppose there are some, as with every rule, exceptions to these pieces of advice. But in my experience not many.
I have been very bullish on Perú’s investment attractiveness and I have invested money here. Yes, I know Perú is not a company, but it has been a glorious investment vehicle, and I think the same rules apply. I’m very cautious on Perú now. I think this is a time to pullback and just wait and see. I will grant you, I’m not a big risk guy. In my investment life I have witnessed precipitous investment losses that the most respected analysts said could never happen. I like to feel reasonably secure and I like to know why I am investing my money. I just can’t justify any reason right now to invest in Perú or in Perú’s incoming neophyte leadership.
There is just too much murky water ahead. I’m willing to let others navigate the path to the high risk rewards if that’s what lie ahead. I will stand ready to rejoin the voyage when there is soundness and clarity that the leadership has a firm grasp at the financial helm, and has charted a prosperous course that will fill the economic sails with the winds of prosperity. I think Perú may be about to find out what it’s like to have a pollywog commander in charge of the fleet.
1. When one of the companies you are investing in has a change of leadership, “SELL!”
2. Know the leadership and history of a company’s management before you invest. You are investing as much (or more), in the leadership’s integrity, as you are in their company's resources. No matter how good the company’s past performance, if you don’t like, trust and respect the management, “DO NOT BUY!!”
I suppose there are some, as with every rule, exceptions to these pieces of advice. But in my experience not many.
I have been very bullish on Perú’s investment attractiveness and I have invested money here. Yes, I know Perú is not a company, but it has been a glorious investment vehicle, and I think the same rules apply. I’m very cautious on Perú now. I think this is a time to pullback and just wait and see. I will grant you, I’m not a big risk guy. In my investment life I have witnessed precipitous investment losses that the most respected analysts said could never happen. I like to feel reasonably secure and I like to know why I am investing my money. I just can’t justify any reason right now to invest in Perú or in Perú’s incoming neophyte leadership.
There is just too much murky water ahead. I’m willing to let others navigate the path to the high risk rewards if that’s what lie ahead. I will stand ready to rejoin the voyage when there is soundness and clarity that the leadership has a firm grasp at the financial helm, and has charted a prosperous course that will fill the economic sails with the winds of prosperity. I think Perú may be about to find out what it’s like to have a pollywog commander in charge of the fleet.
Comments posted here may be copied to the Peru-N-English Discussion Group site.
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