Speaking of dawn raids (see post below), the European Commission raided the Italian offices of Cargill Inc and Bunge Ltd, in an apparent investigation of possible cartel activity affecting grain and cereal markets.
As reported by Reuters and the WSJ.
It appears Cargill and Bunge may have run afoul of Mister Prezzi (i.e., Mister Prices) - new Italian regulatory czar Antonio Lirosi.
Cargill and Bunge have been reaping incredible earnings, even in these tough ecomonic times. As the WSJ reports, Bunge's net income for 1Q 2008 was up nearly 2,000%.
Why Italy? As reported by cafebabel, frozen incomes and an inflation rate above the European average are pushing purchasing power to the breaking point. The rising price of Pasta -- a staple good -- is hitting particularly hard.
Stay tuned for more information on the EC's investigation.
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