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Why the ‘Andean Three’ Will Bounce Back Quickly From Coronavirus

Latin America is the world’s coronavirus hotspot but some of its best-run economies – Peru, Colombia and Chile – look well placed to recover…… Emerging markets have been flattened by the stampede for the exit. The Institute for International Finance estimates that overseas investors pulled $95billion from emerging markets in the first quarter of 2020 – the EM largest outflow ever. Investors are right to be worried. Emerging markets tend to have bad health systems, cash-strapped governments and informal…

Latam Air Files Chapter 11 Bankruptcy, Stymied by Lockdowns

Latam Airlines Group SA, Latin America’s largest air carrier, sought bankruptcy court protection in New York after the Covid-19 pandemic grounded flights across the region. The Chapter 11 petition allows Latam to keep operating while the Chilean carrier works out a plan to pay creditors and turn around the business. Latam, whose shareholders include Chile’s Cueto family and Delta Air Lines Inc., continues to operate on a reduced schedule, and it has commitments for a bankruptcy loan of up to $900…

No model answers for this Covid 19 crisis

A forecasting model is an opinion column with more maths. Its purpose is to spark action, not necessarily to be right. Will we ever trust experts again? The models that predicted the spread of the coronavirus have been under fire for months. Now the economic forecasts that were based on those models have highlighted exactly how out of whack the epidemiological predictions were. What will happen if we lose faith in modelling? Saving $60 billion should never feel like an anticlimax, but here we are in 2020, supposedly…

Air New Zealand services need to be restored at the earliest opportunity to South America

After Alice fell down a rabbit hole in Lewis Carroll’s fantasy novel Alice in Wonderland she found herself in a truly mad, topsy-turvy world where she underwent startling physical changes including being shrunk to midget size.     Air New Zealand was one of the most celebrated and profitable airlines in the world before it suffered the same fate as Alice, after the Covid-19 coronavirus pandemic collapsed its business and forced it to shrink alarmingly. With international borders…

The impact of Covid-19 on real estate

From residential to retail, offices to logistics, the long-term impact of Covid-19 When we decided on the theme ‘tipping points’ for our 2020 Impacts programme at the end of 2019, various topics were discussed: climate change, demographics, technology and many more. What we didn’t know is that we were about to be faced with a pandemic. Covid-19 changed the way we work and live almost overnight and is likely to have a long-term impact on real estate. As countries come out of their strict lockdowns but…

Savills Food Security Index measures how well a country provides sufficient, safe and healthy food

Precios de la tierra agrícola actualizados 2016
Understanding food security has never been more critical. Climate change and extreme weather were testing food systems to their limits even before Covid-19 closed borders and shook labour availability. To give investors global context, Savills Food Security Index ranks 38 countries based on four pillars of food security: availability, access, utilisation and stability. Availability Ensuring an adequate supply of food. Greater weighting is given to domestic production due to reduced exposure to disruptive international…

Latin American economies in the race to the bottom

Prospects for Latin America are dire this year amid the paralysis in domestic activity; collapse in prices for export commodities; massive job losses; pullback in remittances; rising debt vulnerabilities; and limited scope by governments to adequately respond to the crisis. Consequently, our Consensus Forecast currently sees Latin America’s economy contracting 5.1% this year, which would mark one of the worst contractions in the continent’s history. NUMBER OF THE WEEK – 7% Of the region’s largest…

Bringing up Children to be Bi or Multilingual is a must in todays interconnected world

Children raised bilingual or multilingual in the early days will mix languages. They make errors by using the syntax of one language and the words of another. (“Touch the guitar”, my old Spanish teacher’s daughter would say, instead of “Play the guitar”.) But these problems disappear quickly. By three or four, children reliably separate the languages, knowing which can be spoken with whom. Their fluency in each would be the envy of any adult language-learner. Many parents once believed that a second…

Pricing International Farmland

Farmland has been proven to deliver strong returns over time with its low volatility and its little correlation with other asset classes and the broader global economic cycle. Since 2001, U.S. farmland prices have risen by 6.8% p.a.,1while farmland in Poland has risen by 11.8% p.a. and in Brazil by 12.9% p.a. (in local currency terms). These return characteristics are proving attractive to many investors by providing diversification to their portfolios. Cropping farmland value is a function of farm income and…

Covid-19: The Good, the Bad and the Ugly

In the depths of quarantine tedium, this writer unearthed two movies whose titles have an uncanny pertinence in these surreal times.  Readers well know that in the less than six months since the Covid-19 coronavirus infected its first unwitting human victim in Wuhan it has so far infected close to four million people and killed more than 272,000.  To break the chain of infection the citizens of many nations have been compulsorily quarantined (dubbed “lockdowns”) in time-heavy domestic limbos.…

Uruguay sees the region’s first 5G deployment

Uruguay enjoys one of the highest broadband penetration rates in Latin America, and the second highest fixed-line teledensity rate after Costa Rica. Mobile penetration is the second highest after Panama. In terms of computer penetration, Uruguay tops all other countries in the region by a considerable margin, and this has facilitated growth in fixed-line broadband adoption. The country has a strong focus on fibre infrastructure, which accounts for about 70% of residential fixed-broadband connections and almost…

Biggest South American Corporate Farm Groups

With agricultural commodity prices at multi-year highs, buying farmland is seen as a more direct way to cash in on valuable crops and to take advantage of the long-term appreciation of farm property. As a result, investors from around the world are pouring a lot of funds into agriculture this year to boost yields across the top producer nations as record-high food prices jolt markets and send buyers scurrying for supplies. South America is today worldwide considered a top place to buy, lease and manage agricultural…

Covide 19 awakens a new customer base for Latin America’s e-commerce giants

The coronavirus pandemic is reshaping consumer habits in Latin America, sending droves of buyers online for the first time. The coronavirus pandemic is reshaping consumer habits in Latin America, sending droves of buyers online for the first time. MercadoLibre Inc, the region’s largest e-commerce marketplace, said it registered 1.7 million new customers from February 24 to March 22, up 28 percent from the same period a year earlier. While lockdowns to slow the spread of the coronavirus have been a boon…

Plunging oil prices ultimately grease a commodity countries wheels

Lower oil and fuel prices ultimately boost disposable incomes and food demand In a year of unprecedented events, this week commodity markets added another to the list. West Texas Intermediate (WTI) oil prices traded in negative territory on Tuesday for the first time ever. Already reeling from plunging prices over 2020, WTI oil prices traded as low as -$US40/barrel at one stage. The fall over 2020 owes to the COVID-19-induced collapse in global demand, while major producers also failed to agree on supply cuts…

Why farmland now? Amidst unprecedented market volatility

Why farmland now? Financial markets are responding to the current limited visibility and uncertainty, both severely exacerbated by the coronavirus pandemic, by retreating towards safe haven investments such as U.S. treasuries (where yields have declined below 1%), gold and certain currencies (e.g. the U.S. dollar). A compelling alternative prior the virus outbreak, and made more so by coronavirus, is farmland. Farmland has a history of exhibiting unique value durability and income levels through economic downturns.…
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