Posted on 06/06/2011 7:03:11 PM PDT by Tailgunner Joe
Peru’s financial markets have delivered a drastic verdict on populist left-winger Ollanta Humala’s narrow victory over conservative Keiko Fujimori in Sunday’s presidential election.
Within minutes of the markets opening in Lima on Monday, the sol was down 1.2 per cent against the US dollar and the stock market plunged 9 per cent before trading was halted, with a 15 per cent drop in mining shares. Hardly unexpected for a man who threatens to impose windfall taxes on minerals companies to finance pledges to divert more of Peru’s wealth to the country’s many poor. The message which won over voters is now scaring the wits out of investors.
Results from 88.4 percent of ballot boxes gave Humala a narrow but growing lead of over 2.5 percentage points over Fujimori, the daughter of imprisoned ex-president Alberto Fujimori.
Claiming victory on Sunday, Humala told supporters, “We want economic growth with social inclusion,” and promised minimum wage increases, free child care, and increases in pensions and public secctor pay.
Humala’s chief economics adviser, Felix Jimenez, who authored his campaign platform, sought to reassure markets, saying the government and central bank both had instruments to fend off a rout and that Humala would run the economy responsibly.
“Our economic proposals are totally sensible: to maintain macroeconomic equilibrium, consolidate growth and create conditions for private domestic and foreign investment growth,” he told Reuters.
But investors are worried about the 48-year-old former military commander’s more radical plans and his past association with Venezuela’s populist president Hugo Chavez. While Humala has distanced himself from radical policies he has espoused in the past – including wholesale nationalisation – there are deep concerns about his plans for a windfall tax on mining companies and proposals to renegotiate some concessions in mining, energy and airport/port management.
(Excerpt) Read more at blogs.ft.com ...
So he promised free money.
same ol’ same ol
Anyone else think this thread was going to be about Weiners “wife” Huma?
Suckers!!
lol. maybe
who would admit it??
look for silver and copper to open higher tomorrow.
By the way, Weiners wife Huma does not appear to be the sharpest knife in the drawer!!! And......Mr. Weiner, himself, is a major “dirt bag”!!! I want Weiner to resign so that he can join CNN and team up with Spitzer. I can just see the ads now. “Spitzer & Weiner, News From The Pervert Democrat POV!!!” And....in prime time too!!!
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