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H-economist

“Information and analysis of the Chilean market.”

September 27, 2011 New Compliance of interbanking transactions

Plenty of people ignore how their financial operations are carried out in the international financial system. Thousands of millions of bank notes go back and forth in the financial software messages called swift messages, which are no other than computer codes transmitted through an international network. Hence, as the reader might have noticed, there is not money the one that goes from bank to bank, just mere codes that point out transactions in money between people, companies, and sometimes, financial institutions. Notwithstanding, the biggest challenge is executing these transaction with the highest level of transparency. That is the challenge.

May 9, 2011 Hinzpeter before balloting on HidroAysen “Its appoval is pivotal for the country”

The minister of internal affairs said that this initiative “if approved a decade ago, it would have allowed us to be less polluted, and with cheaper energy.”

Remarkable new for ENDESA and COLBUN, that have seen its prices affected positively.

May 8, 2011 At a glance

Regardless of broad’s situation, and gloomy forecasts of the economists, our cute-Chilean-economy seems to be sneakily unconnected to the situation abroad. Growing at 6%, and with an inflation rate that has not gotten near 1%, our economy shows a nonchalant attitude towards international shocks. However, just in those indicators, because these shocks are reflected on our two major gauges: benchmark IPSA, and the exchange rate CLP/USD.

Last week we received positive news, and also bad news that stopped the sudden rally generated by Bin Laden’s death, and that drove upwards major stock indexes, but that was stopped by the negative news related with the debt crisis in Europe. Later, gripping markets became gloomy, and all green numbers turned red. Nonetheless, the week ended with positive numbers, and more numbers reassuring recovery.

What’s to come this week? more apocalyptic news from Europe, inflationary pressures, and commodity prices breaking their upward trends? If so, there’s a chance to make a profit this week. Let’s start with oil. It seems to be peaked, and many oil traders were betting that the oil prices would fall. Instead, the prices kept rising. On Monday his luck finally turned around. And prices started to collapse, and have slid 12% in the span of a week. In the other hand, gold and silver prices were affected by, positive economic data. Gold will be most likely to keep its upward trend due to the long run inflationary expectations.

I consider my position to be a little different; I consider that there’s no data backing a medium-term falling of commodities, so I bet it is temporary. Nevertheless, just in case, if you see that prices keep falling, breaking your resistances lines in either market your investing, just proceed with your stop loss, because one important lesson must’ve been learnt during the last months: when one investor starts the sell-off, all of them will follow him.

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May 8, 2011 Britain’s Finance Minister does not want to participate in a new rescue plan or Greece.

In an interview with BBC radio, the politician “Tory” declared that a possible financial aid for Portugal would be under pressures made by both UE, and the IMF.

May 7, 2011 Housing prices soaring for diminishing stocks, and higher labor costs

Rises averaging 5% have experimented on the housing prices in the last six months in Santiago. A diminishing stock (remember that this sector was stalled when the crisis unfolded back in 2008), and the higher costs faced by the construction companies due to the cost of the land, and labor.

This is an excellent news for the construction company SOCOVESA that closed at CLP 325 on Friday’s trading session at the Stock Exchange. These numbers may push the stock’s price up on Monday’s aperture, but you must be careful with the global landscape, because it has shown to be more relevant when it comes to market prices. It must, also, be taken into account the dividend payment period, which is growing nearer, and that has a limit day of  buying of 12.05.2011 and it will be paid on 18.05.2011.

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