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| Version 1 | Version 2 |
|---|---|
| Chavez plans hit Venezuela market | Chavez plans hit Venezuela market |
| (20 minutes later) | |
| Venezuela's financial markets have tumbled after President Hugo Chavez promised to nationalise the biggest phone and power companies. | Venezuela's financial markets have tumbled after President Hugo Chavez promised to nationalise the biggest phone and power companies. |
| The Caracas Stock Exchange lost 15%, as bonds and the bolivar also dropped. | The Caracas Stock Exchange lost 15%, as bonds and the bolivar also dropped. |
| Leading declines were telecoms firm CA Nacional Telefonos (CANTV), which plunged by 25%, and power firm Electricidad de Caracas, down 20%. | Leading declines were telecoms firm CA Nacional Telefonos (CANTV), which plunged by 25%, and power firm Electricidad de Caracas, down 20%. |
| While Mr Chavez had outlined some of his plans, analysts said he had decided to go further than previously thought. | While Mr Chavez had outlined some of his plans, analysts said he had decided to go further than previously thought. |
| 'Fairly compensated' | |
| "The news comes as a surprise, as we were under the impression that President Chavez supported direct foreign investments," said Bank of America analysts in a research note. | "The news comes as a surprise, as we were under the impression that President Chavez supported direct foreign investments," said Bank of America analysts in a research note. |
| Wall Street heavyweight Merrill Lynch said the situation was very serious. | Wall Street heavyweight Merrill Lynch said the situation was very serious. |
| Mr Chavez, who is due to be inaugurated for the third time, unveiled his plans on Monday during a speech to the nation. | Mr Chavez, who is due to be inaugurated for the third time, unveiled his plans on Monday during a speech to the nation. |
| Nationalization has a long and inglorious history of failure around the world Tony Snow, White House spokesman | |
| "All of that which was privatised, let it be nationalised," he said, adding that the central bank's autonomy would be removed as part of wider plans to change Venezuela's constitution. | "All of that which was privatised, let it be nationalised," he said, adding that the central bank's autonomy would be removed as part of wider plans to change Venezuela's constitution. |
| The plans are all part of a wider changes aimed at developing a "Socialist Republic of Venezuela". | |
| Mr Chavez's announcement drew criticism from the US. | |
| "Nationalization has a long and inglorious history of failure around the world," said White House spokesman Tony Snow. | |
| "If any US companies are affected, we would expect them to be promptly and fairly compensated," said Gordon Johndroe, spokesman for the White House National Security Council. | |
| The US State Department said it expected Venezuela "to follow through on all of its contractual obligations". | |
| Foreign players | Foreign players |
| Foreign Investors were shaken up by the news, and shares were hit in Mexico where the main stock index lost 2% because a number of companies have close business links with Venezuela. | Foreign Investors were shaken up by the news, and shares were hit in Mexico where the main stock index lost 2% because a number of companies have close business links with Venezuela. |
| Oil revenues have been driving Venezuela's social revolution | |
| Among the other foreign firms that are likely to be affected, are US power company AES and US phone firm Verizon, both large shareholders in Venezuela. | |
| AES lost more than 4% in New York, while Verizon was little changed. | AES lost more than 4% in New York, while Verizon was little changed. |
| The changes would also end foreign control of crude oil refineries in Orinoco. | The changes would also end foreign control of crude oil refineries in Orinoco. |
| Another factor hurting Venezuela's markets on Tuesday was a dip in the price of crude oil that threatens to dent the nation's most lucrative natural resource. | Another factor hurting Venezuela's markets on Tuesday was a dip in the price of crude oil that threatens to dent the nation's most lucrative natural resource. |
| Earlier in the day crude oil fell below $54 a barrel in New York despite previous threats by oil group Opec that it may trim output, and a spat between Russia and Belarus that has hurt European supplies. | |
| Much of Mr Chavez's poverty plans have been based on securing money from Venezuela's energy sector. | Much of Mr Chavez's poverty plans have been based on securing money from Venezuela's energy sector. |