logo
  Join        Login             Stock Quote

Fernandez Is Making YPF Her Falklands War, Takes On Spain, EU

 April 19, 2012 10:13 AM


(By Sober Look) Argentina has taken a step closer to becoming another Venezuela. In a populist style move, President Cristina Fernandez is trying to nationalize YPF Sociedad Anonima, an oil and gas company operating in South America, US, and Indonesia. If successful, the government of Agentina would control 51% of the company and as Fernandez says, it's all for "public good".
Washington Post: Argentine President Cristina Fernandez says she is proposing a bill to nationalize the YPF oil company that is controlled by Spain's Repsol.

She says in an address to the country that the measure sent to congress on Monday is aimed at recovering the nation's sovereignty over its hydrocarbon resources.
But by doing so, Argentina is replaying the Falkland Islands fiasco. After all it's the 30th anniversary of the Falklands War and the Brits are concerned about an actual invasion on the islands. Except rather than fighting the UK, Argentina is taking on Spain, since YPF is controlled by Repsol, a Spanish firm (as though Spain doesn't have enough problems to deal with). This type of warfare is much easier for Argentina to execute than an actual invasion. Spain and the EU are vowing to defend their firms' interests around the world - it will be interesting to see how far they are willing to go. Needless to say the YPF shares sold off a bit.

YPF share price (Bloomberg)

With the economy stalling, this is the ultimate "wag the dog" approach to improve Fernandez' flagging support. After the tremendous amount of progress the nation has made in the past decade, this move may set Argentina back to the "banana republic" status.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageGermany Is On The Rebound - Time To Buy?

Based on this year's 17% spike in the Stoxx Europe 600 Index, it seems investors have found a home in read on...

article imageIs Drought Risk In The American West An Economic Threat?

The historic and ongoing drought in California is getting harder to ignore in terms of its potential impact read on...

article imageFunds Behaving Badly

Discipline is still the key to read on...

article imageGenuine Parts Co. (GPC): This Company's Raised Dividends For 59 Years

There are 253 million cars and trucks driving along U.S. roads. And the average age of those automobiles is read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.