The Brazilian real rose to a five-week high Wednesday on expectations that record exports will sustain the fastest economic expansion in a decade and boost demand for the local currency. The real ended the day at 2.60 to the dollar. The currency has gained 4.7 percent since Finance Minister Antonio Palocci on March 28 raised his 2005 export forecast to $112 billion, 17 percent above last year’s record.
Category: Paywall
Posted inDaily Brief
Octavio Ornelas, CFO, Pemex confirmed to speak at the LatinFinance/IDB “Latin American Borrowers’ & Investors’ Forum 2005”
LABIF is a high-level, invitation-only summit where representatives of Latin American issuers — directors of public credit, central bank governors and the senior management of leading corporate issuers — can engage in detailed discussion and debate with major institutional investors, analysts, advisers and representatives of the rating agencies. To apply for an invitation please click here.
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Carlos Garcia Moreno, CFO, America Movil confirmed to speak at the LatinFinance/IDB “Latin American Borrowers’ & Investors’ Forum 2005”
LABIF is a high-level, invitation-only summit where representatives of Latin American issuers — directors of public credit, central bank governors and the senior management of leading corporate issuers — can engage in detailed discussion and debate with major institutional investors, analysts, advisers and representatives of the rating agencies. To apply for an invitation please
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Paranapanema Ends Losses
Brazil’s Paranapanema mining group earned $44.4 million in 2004, ending six years of losses. The company is now negotiating with the government’s BNDES development bank to convert its $100 million debt into equity. Pension funds led by Previ, the country’s largest, control the company and will convert $200 million in corporate bonds into equity before they mature in 2007.
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Chile Exports Weaken
The government announced that Chile’s trade surplus fell to $1.053 billion last month, 12% less than in the same period last year. Economists had expected a balance of $1.30 billion. Last month, Chile posted a $585 million surplus in February. Exports last month rose 20% year on year to $3.65 billion, and imports rose 39% to $2.6 billion. Economists say the data suggest continuing robust economic activity, with external demand, investment, and consumption all making a strong contribution to growth.
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Pemex To Issue Up To US$1.8bn Bonds In Q2
Mexico’s state oil company Pemex plans to issue up to 20bn pesos (US$1.8bn) of bonds, most of which will have variable interest rates, in the second quarter this year, the company said in a statement.
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Chile: Central Bank Raises Rates
Chile’s Central Bank increased its benchmark lending rate by 25 basis points to 3%, a two-year high. Central bankers said they expect to continue raising rates. International risks to the economy have increased and oil prices probably will impact inflation in the short term, the bank said. Economists expect rates to increase to 4% by year-end, according to a Central Bank survey.
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Profits Rise at Walmex
Wal-Mart de México boosted profits by 35% in the first quarter, thanks to Mexico’s biggest surge in consumer spending in four years. Net income rose to $166 million. March same-store sales rose 9.5% versus a decline of 2.7% a year earlier. Retail sales rose more than 6% a month between September and January. Walmex wants to open 70 new stores this year.
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Chile’s Consumer Prices Jump
Chile’s consumer prices climbed in March at the fastest pace in two years as rising oil prices boosted transport costs. Prices jumped 0.6 percent from February, the first increase in four months, raising inflation to 2.4 percent in the last 12 months. The report sparked speculation that Chile’s central bank would raise its benchmark lending rate again this week.
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Scotiabank Sues Argentina
Canada’s Scotiabank is demanding $600 million in compensation from Argentina in a suit filed under the United Nations Commission on International Trade Law. Scotiabank claims government policies in the 2001-2002 financial crisis forced it to close its subsidiary Scotiabank Quilmes, later sold to local investors. Scotiabank’s claim for arbitration is one more than 100 pending against Argentina.