Gas Natural Sells Mexican Assets for US$1.2B

Looking for cash after acquiring rival Spanish energy firm Union Fenosa S.A., Spanish energy giant Gas Natural sold majority stakes in some of its Mexico-based electricity plants to Mitsui & Co. and Tokyo Gas, two Japanese firms, for US$1.2 billion.

Venezuela's Chavez Orders Investigation of Toyota, Says Company "Can Leave"

According to local press sources, Venezuela's president, Hugo Chavez, who has become embroiled in disagreements with several major car companies recently, is working to push Toyota Motor Corp (NYSE:TM), the world's largest car company, to do more to encourage technology transfer, saying that the government would expropriate the assets of any company that failed to meet new regulations.

Chile's Centre-right Presidential Candidate, Billionaire Businessman Sebastian Pinera Fights Berlusconi Comparison

Chilean billionaire Sebastian Pinera, owner of Chile's LAN Airlines, a media company, and a sports team, who is currently leading polls in the run-up to Chile's January 17, 2010 presidential election, is working to downplay statements made by rivals that compare him to controversial Italian media magnate Silvio Berlusconi.

US$558M Lawsuit Against Mexico's Cemex Dismissed by U.S. Court

According to local press sources, a lawsuit seeking US$558 million in damages from Cemex S.A.B. de C.V. (NYSE:CX), Mexico's largets cement company, was dismissed by a U.S. judge, giving the company the right to produce and sell cement at its El Paso, Texas location.

Mexican Afore Pension Funds to Invest New Capital in Local Assets Until Q2 2010

According to local news sources, Mexico’s pension funds, the country’s largest institutional investors, which manage assets worth US$87 billion, will be investing all new capital in domestic assets until the second quarter of 2010.

Peru's Economy Could Grow by 5.5% in 2010, Central Bank Says

In a report published on its website, Peru's central bank, el Banco Central de Reserva del Peru, said that as economic activity picks up, the country should report GDP growth of 5.5% in 2010 and 2011.

FDI in Peru Could Grow 50% in 2010, Ministry of Finance Says

According to estimates from Peru's Ministry of Economics and Finance, foreign direct investment in the country could grow by as much as 50% in 2010.

As Mexico's Economy Contracts, Budget Deficit Widens

Mexico, Latin America's second largest economy, a country that is battling its worst depression since the 1930s, is expected to see its budget deficit widen to 5% of GDP, as tax revenues fall and year on year GDP dips by 6.8%.

Chile's Central Bank Keeps Interest Rates at Record Lows

As Chile battles its worst bout of deflation since 1934, the country's Central Bank announced today that it would hold benchmark interest rates at record lows, in order to keep the country's economic recovery on track and help provide a boost to inflationary pressures.

Argentine Corn Yields Expected to Increase in 2010

After several difficult years of dry weather and battles with the country's government over export taxes, farmers in Argentina, the world's second largest exporter of corn, are expecting crop yields in 2010 to reach 14 million metric tonnes, up 6% from 2009 levels.

Brazil Telecom Sector to Offer Strong Opportunities in 2010

Joao Cox, the CEO of Claro, the Brazilian subsidiary of Mexican telcom giant America Movil S.A.B. de C.V. (BMV:AMXA), told reporters that Brazil’s mobile carriers will probably surpass 170 million lines by the end of 2009, equal to almost 90% of the country’s population.

Argentina Authorizes Swap of Defaulted Bonds

According to local press sources, Argentina's President, Cristina Fernandez de Kirchner, authorized the country's Economy Ministry to carry out a swap of $20 billion of defaulted debt, readying the country for its first international bond sale since 2001.

Mexico's Cemex S.A.B. Sells US$1.6B in Bonds

Mexico's Cemex S.A.B. de C.V. (NYSE:CVX), the largest cement company in Latin America, sold US$1.6 billion in bonds, as part of its US$15 billion debt restructuring process.

Citibank Improves Outlook on Mexican Stocks, as U.S. Releases Positive Jobs Data

Citigroup Inc. (NYSE:C) announced that it had raised its outlook on Mexican stocks to "neutral," after the U.S., Mexico's largest export market, announced that job losses in November were the lowest since the outset of the recession, an indication that the U.S. economy may be recovering faster than expected.

Consumer Prices in Chile Fall 2.3% in November

According to data from Chile’s National Statistics Institute, consumer prices in the country fell by 2.3% in November, the worst bout of deflation Chile has experienced since 1934.

Venezuela's Bolivar Falls 9% as Chavez Threatens to Nationalize Banks

Venezuela's Bolivar fell 9% in trading yesterday, as investors scrambled to convert Bolivars for dollars after the country's president, Hugo Chavez, threatened to nationalize the country's banking system, a sector he accused of engaging in speculation rather than working to promote the country's development.

Ecopetrol Lists ADR on Peruvian Exchange

Ecopetrol S.A. (NYSE:EC), Colombia's largest oil company, announced that it has listed its American Depositary Receipt (ADR)on Peru's main stock exchange, the Bolsa de Valores de Lima.

Rebounding Remittances in 2010 Could Help Cemex, America Movil

In 2010 an uptick in remittances, money sent by foreign born residents to family members abroad, could help some of Mexico's major companies like Cemex, the cement company, and America Movil, the cell-phone company, that have developed platforms to take advantage of these money flows.

Chile's Central Bankers Vote Unanimously to Hold Rates at 0.5%

According to a report published on the website of Chile's Banco Central, all five of the country's central bank presidents voted unanimously to hold interest rates at a record low 0.5%, a sign that despite indications of renewed economic growth, inflation fears remain low, and continued monetary policy support is in order.

Venezuela Threatens Military Action Along Colombian Border

In the latest of a series of heated exchanges with Colombian diplomats, Venezuela's president Hugo Chavez threatened to destroy foot bridges that connect the two countries, a further disruption in relations between the two countries.

Brazil's Real Most Over-Valued Currency in World, Goldman Sachs Says

Even as currencies throughout Latin America have jumped in recent months, according to a note by Goldman Sachs economist Thomas Stolper, despite the country's new 2% tax on foreign purchases of equity and fixed-income assets, Brazil's Real, which has gained 34% in 2008, remains the region's most over-valued currency.

Banorte Writes Off MXP 1 Billion Loss on Loans to Comercial Mexicana

Mexico's Banamex,the country's second largest bank, a 100% subsidiary of Citigroup Inc. (NYSE:C), reported that although it is still taking legal action through bankruptcy procedures, it has decided to officially write off losses worth MXP 1 billion (US$77 million) on loans to Contralador Comercial Mexicana S.A. de C.V. (BMV:COMERCIUBC), a troubled Mexican supermarket operator that was wracked by charges worth MXP 6.3 billiion (US$ 500 million) from bad currency bets made in late 2008.

Peru's Exporters Expect 10% Increase in Global Demand in 2010

Representatives from Adex, one of the counry's exporter associations, told press sources that the expect demand for exports from Peru, the world’s biggest exporter of silver, fishmeal and organic coffee to jump by 10% in 2010.

Colombian Peso Slips on News of Venezuelan Military Action Along Border

Colombia's peso fell 0.7% against the dollar in trading yesterday on news that Venezuela's military had bombed two pedestrian bridges in the border region, escalating tensions between the two countries.

Bill Gates Increases Stake in Mexico's Televisa

According to reports filed with U.S. SEC, through his firm, Cascade Investment, and foundation, the Bill and Melinda Gates Foundation, U.S. billionaire Bill Gates has increased his stake in Mexico's Grupo Televisa S.A. (NYSE:TV) and now controls 4.1% of Televisas' Series A Shares, 7.7% of each of the company's Series B, D, and L share classes.

Fonpet, Colombia's National Pension Plan, Investigates Possibility of Investing in Ecopetrol S.A.

Óscar Iván Zuluaga, Colombia's Treasury and Public Credit Secretary, told reporters that Colombia's Fondo Nacional de Pensiones de las Entidades Territoriales (Fonpet), was investigating the possibility of investing in, Ecopetrol S.A. (NYSE:EC), the country's partially state-owned oil company.

Chilean Peso Drops After Verbal Signal from Central Bank

Chile's peso fell .9% against the U.S. dollar to 497.25 after the country's Central Bank president Jose de Gregorio announced at a press conference that the bank does not "rule out intervening" to counteract upward pressure on the exchange rate.

Colombia's Ecopetrol May Float Additional 10% of Shares in 2010

Óscar Iván Zuluaga, Colombia's Treasury Secretary, told reporters that Ecopetrol S.A. (NYSE:EC), the country's partially state-owned oil company, may float an additional 10% of its shares in 2010.

Venezuela's Economy Contracts by 4.5% in 3Q 2009

Venezuela's Central Bank, the BCV, announced that the country's economy fell by 4.5% in third quarter of 2009, largely due to a 9.5% contraction in the oil sector.

Ajemex Sues Coca-Cola for US$30 Million

Ajemex, producer of Mexico's popular Big Cola brand has accused larger rival Coca-Cola Femsa S.A.B. de C.V. of engaging in monopolistic practices, and is seeking damages though Mexico's competition watchdog, the CFC, of US$30 million.

Chile's Arauco Re-Opens Eight Plants after Worker Protests

Celulosa Arauco y Constitución, Latin America's largest timber company, a subsidiary of Empresas COPEC, S.A. (Santiago Stock Exchange:COPEC), reported that with the help of local police officers, the company successfully re-opened eight of 24 plants closed due to disruptions from protesting sub-contracted workers.

Brazil's Lula Says Country Growing at a "Chinese Rate"

Brazil's president, Ignancia Lula da Silva, told press sources that his country's economy is not only successfully emerging from the 2008 economic crisis, but is now achieving a "Chinese rate" of growth, of above 9%.

Rising U.S. Auto Demand a Boost to Mexico's Parts Suppliers

As U.S. automotive giants General Motors Corp and Ford Motor Company (NYSE:F) reported rising car sales in October, Mexico also experienced a 26% jump in automobile production, a major boost to the country's parts manufacturers like Alfa S.A.B. de C.V. (BMV:ALFAA).

Banco do Brasil Announces Plans to Expand Operations in Chile

Banco do Brasil S.A. (SAO:BBAS3), Latin America's second largest bank, with assets worth US$260 billion, announced plans to expand its operations in Chile, one of the region's most successful economies.

Mexico's Grupo Modelo Could Sell 50% Stake to InBev

Mexican press sources reported that Grupo Modelo S.A.B. de C.V. (BMV:GMODELOA), Mexico's largest beer company, could be preparing to sell a 50% stake of its shares to global beer giant Anheuser-Busch InBev NV (NYSE:BUD), for an estimated US$10 billion.

Mexican, Colombian Pesos Undervalued Aganist Dollar, BoA Says

In a note to clients, Bank of America strategists wrote that Latin America may have the most undervalued currencies in the world, estimating that Mexico's peso is trading 15% below its "Fair Value" level.

Coca-Cola Not Planning to Buy FEMSA Cerveza, CEO Says

Brian Smith, the CEO of Coca-Cola de Mexico, told reporters that his company is not planning to acquire FEMSA Cerveza, the beer producing division of Fomento Economico Mexicano S.A.

Chile's Central Bank Signals Possible Upcoming Rate Hike

On fresh reports that the country's economy is recovering speedily from the contraction in 2008, Chile's Central Bank announced plans to scale back emergency lending programs to the private sector, signaling the banks positive view of the economy, and indicating that a rate hike might happen in the near future.

Mexico's Dominant Telecom, America Movil, Begins Losing Market Share to Rival Telefonica

America Movil, S.A.B. de C.V. (NYSE:AMX), Carlos Slim's dominating telecom, reported that its share of the Mexican market slipped to 71.7%, as rival Telefonica S.A. (Madrid Stock Exchange:TEF) gained ground.

Colombian Consumer Spending Increases in October

Colombian press sources, citing a report from Bogota-based market research firm Raddar, reported that in October, consumer spending increased to COP 26.9 billion (US$13.5 million) up 4% from a year ago.

Bancolombia Reports 3Q Net Profits Up 27% from Previous Quarter

Bancolombia S.A. (NYSE:CIB), Colombia's largest bank, reported that third quarter net profits of COP 321.2 billion (US$ 161 million), up 27% from the previous quarter, and up 12% from the third quarter results reported a year ago.

According to IMF, Mexico's Economy to Grow at 3% in 2010

Nicolás Eyzaguirre, the International Monetary Fund's Western Hemisphere Department Director told Mexican press sources that he expects Mexico's economy to grow at 3% in 2010.

Central Bank Says Chile's Economy to Grow at 4.4% in 2010

According to a recent study by economists from Chile's central bank, after contracting during the first three quarters of 2009, the country's economy is expected to rebound in the fourth quarter, and hit a 4.4% growth level in 2010.

Chile Posts Trade Surplus, President Bachalet Seeks to Further Strengthen Ties to Asia

After the Chile's central bank reported a US$ 881 million trade surplus in October, the copper exporting country's president, Michelle Bachalet embarked on a diplomatic trip to China, South Korea, and Singapore, to further strengthen trade ties with Asia.

Mexico's Cemex Announces 3B Peso Bond Offering

Cemex S.A.B. de C.V. (BMV:CEMEXCPO), Mexico's largest cement company, announced it is preparing a 3 billion peso (US$226 million) bond offering.

Hugo Chavez's Border Closure Paralyzes Trade with Colombia

After Venezuelan leader Hugo Chavez closed cross-border trade with Colombia last weekend, trade between the two countries has frozen, with business owners losing an estimated US$4 million per day.

India Resources Limited Announces US$15.6M Investment in Argentina Gold Project

India Resources Limited (ASX:IRL) announced a US$15.6M investment plan, in a gold exploration project in southern Argentina.

Southern Copper CEO Expects Copper to Top US$4 in 2010

Oscar Gonzalez Rocha, CEO of Southern Copper Corporation (NYSE:PCU), the largest copper producer in Peru and Mexico, a subsidiary of Grupo Mexico, S.A. (BMV:GMEXICOB) told reporters that he expects copper prices to rise to above US$4 per pound, almost double the average 2009 price of $2.22.

Chevron Environmental Lawsuit Scandal Connected to Convicted Drug Trafficker

Press sources reported that an American businessman responsible for recording a videotape of an Ecuadorean judge negotiating a US$3 million bribe in connection to the US$27 billion environmental lawsuit against U.S. oil producer Chevron Corporation (NYSE:CVX), has served time in prison on drug trafficking charges.

Grupo Mexico "Confident" It Will Regain Control of U.S. Mining Company Asarco

Robert Moore, a lawyer for Grupo Mexico, the world's third largest copper producer, told press sources that the company is "confident" that it will regain its former U.S. subsidiary Asarco, when the result of that company's bankruptcy process is announced on December 1, 2009.

Argentina Begins Importing Chilean Wines

Press sources reported that Argentina, a country that consumes more than 1.2 million litres of wine per year, has begun importing wine from its neighbor and fellow wine producer, Chile.

Colombia's Exports to Venezuela Fall 10.7% in September

In September, Colombia, a country whose currency has appreciated sharply in 2009, reported that its exports to neighboring Venezuela fell 10.7% in September to US$ 2.8 million, down from US$3.1 million a year ago.

Carlos Slim's Brazilian Affiliate, Claro, Faces US$1.5M Fine

Mexican press sources reported Anatel, Brazil's telecom regulator has imposed fines on three companies, including a US$1.53 million fine on Claro, an affiliate of Carlos Slim's mega-telecom Telmex (BMV:TELMEXA), for alleged failures in service quality.

Peru, World's Largest Asparagus Exporter, Hosts Conference for International Companies

Peruvian companies like IQF del Peru S.A., Agroindustrias Aib S.A. and Tal S.A. will play host to an international conference for asparagus producers, held today in Lima. After beginning to export the green vegetable in the 1990s, Peru has emerged as the world's second largest asparagus producer, after China, and largest exporter, with annual export receipts topping US$450 million.

FEMSA Continues Negotiating Sale of Beer Business to Foreign Suitor

Juan Fonseca, Director of Investor Relations at FEMSA (BMV:FEMSAB), Latin America's largest beer and soda producer, told reporters in Mexico that the company is continuing to negotiate with possible buyers regarding the sale of its beer business. Analysts have labelled Heineken N.V. (AMS:HEIA) and SABMiller plc (LSE:SAB) as the front-runners in the negotiations.

Chile's Minister of Public Works Reports Cencosud Close to Re-activating Costanera Center Mega-Project

Sergio Bitar, Chile's Minister of Public Works, told press sources that Centros Comerciales Sudamericanos, S.A. (Cencosud), one of Latin America's largest retail companies, is almost ready to restart construction of the Costanera Center, the company's US$600 million mega-project.

Mexico's Cemex Announces Willingness to Reach Informal Agreement with Chavez over Cement Company Nationalization

At a press conference held for reporters in Mexico City, a representative from Mexico's Cemex S.A.B. de C.V. (NYSE:CX), Latin America's largest cement producer, announced that the company was willing to negotiate to reach an out-of-court settlement with Hugo Chavez's Venezuelan government over the nationalization of assets worth an estimated US$1.2 billion.

Mexican Telecom Telmex International Reports Boost in Profits on Strong Brazilian Demand

Telmex Internacional, S.A.B. de C.V. (BMV:TELINTL), the Mexican telecom controlled by billionaire Carlos Slim, announced that its third quarter profits increased 71% to 2.79 billion pesos, because of successful service expansion in Brazil.

Brazil's Central Bank Mulls Eliminating Use of Dollar in Commercial Transactions Among BRICs

Brazil's central bank chairman, Henrique Meirelles, announced that the bank is considering eliminating the use of the dollar in commercial transactions with other BRIC countries, and investigating the possibility of using local currencies in these transactions.

IMF Announces View that Asian Demand Will Boost Economic Growth in Latin America

At a press conference in Santiago, Chile, Nicolás Eyzaguirre, the Director for the Western Hemisphere at the International Monetary Fund (IMF), told reporters that Asian demand for natural resources would boost exports and spur growth in Latin American countries like Peru, Chile, Venezuela, Colombia, Bolivia, and Argentina.

Mexican Senate Approves Tax Increase on Beer, Move Could Affect Brewery Profits

Mexican press sources reported that the country's Senate approved a tax increase on alcohol and tobacco products, a move that could affect local beer companies like Femsa and Grupo Modelo, producers of the DosEquis and Corona brands.

Chile's LAN, One of Latin America's Largest Airlines, Reports 3Q Profits Down by 37%

LAN Airlines S.A. (NYSE:LFL), one of Latin America's largest airlines, with 2008 revenues of US$4.5 billion, a company controlled by right-of-center Chilean presidential candidate Sebastian Pinera, reported that its third quarter 2009 profits fell 37% to US$52.1 million, down from US$83 million a year ago.

Mexico's Oxxo to Open Five Locations in Bogota, Colombia by Year End

Oxxo, the convenience store operator controlled by Fomento Economico Mexicano S.A. (BMV:FEMSAB), the largest beer and soft-drink producer in Latin America, is expected to open five locations in Bogota, Colombia by the end of 2009, according to Colombian press sources.

Pero's Nuevo Sol Seen as Most Stable Currency in Latin America

Peru's economy, which is expected to grow at 6% in 2009, is boosted by strong exports, and an exchange rate policy that according to statements made to local press sources by central bank president Julio Velarde, has made the country's currency, the Nuevo Sol, the most stable in Latin America.

Mexican Retail Giant Elektra Posts 418M Peso Loss for 3Q 2009

Citing weakness in the country's consumer goods sector, Mexican retail giant Elektra S.A. (BMV:ELEKTRA) which reported total sales of MXP 42.2 billion (US$3.2 billion) in 2008, reported a third quarter loss of MXP 418 million, down from a profit of MXP 673 million a year ago.

Colombia's Central Bank Announces Plan to Buy U.S. Dollars, Ease Rise of Peso

On Friday, October 23, 2009 Banco de la Republica, Colombia's central bank, announced plans to spend as much as 3 trillion pesos (US$1.6 billion) to buy U.S. dollars and government-issued peso bonds, which has risen by 30% against the dollar since March, 2009.

Fast-food Operator Alsea announces 750M Peso Mexican Investment Plan

Alsea, the largest fast-food operator in Latin America, which runs franchises like Starbucks, Burger King, and Domino's, announced a plan to invest 750M pesos in Mexico in 2010, up from 500M in 2009.

Grupo Modelo CEO Says Mexico Needs to Focus on Long-term Development

Carlos Fernandez, Chairman and CEO of Grupo Modelo S.A. (BMV:GMODELOA), the world's sixth largest beer company, producer of the popular Corona brand, told Mexican press sources that to better compete with countries like China, Mexico needs a long-term "concrete action plan" that would "allow for development and a higher quality of life."

CEO of Spain's Endesa S.A. Meets With Chilean President, Re-affirms Commitment to Investment in Chile

Borja Prado, the CEO Endesa S.A., the largest electric utility in Spain, owner of Chile's Empresa Nacional de Electricidad, S.A. and Enersis S.A., told President Michelle Bachalet that "it is very important for Endesa to continue developing investments in [Chile]."

Mexico's Largest Construction Company Reports Weak Revenues as Country's Economy Stalls

As Mexico's economy stalls, and remittances from abroad have fallen, Empresas ICA, S.A.B. de C.V. (BMV:ICA), Mexico's largest construction company, reported that its third quarter 2009 revenues fell 43% to US$10.3 million.

Colombian Peso Falls to Three Week Low on Speculation of Central Bank Intervention

Colombia's peso dropped to its lowest level in three weeks on speculation that the country's Central Bank, which autonomously manages exchange rate policy, would take measures to ease the peso's recent rise relative to the U.S. dollar.

Mexico's Supreme Court May Force Citi to Sell Banamex

Mexico's supreme court is debating whether or not the U.S. government's 34% stake in Citigroup Inc. (NYSE:C), which is the 100% owner of Banamex, a highly profitable Mexican banking operation, violates Mexican laws governing domestic bank ownership by foreign governments.

Peruvian Mining Union Declares Strike

Peru's National Federation of Miners, Metalworkers and Steelworkers (FNTMMSP) declared a formal strike to protest the government's failure to address the fact that more than 80% of the country's mining and metal sector workers are sub-contracted.

Blocked from Offering TV Service, Mexico's Telmex Loses Customers to Televisa

Telefonos de Mexico, S.A.B. de C.V. (BMV:TELMEXA), Mexico's largest fixed-line telephone operator, which is owned by billionaire Carlos Slim, is blocked by Mexico's government from offering TV service because it has allegedly failed to fully comply with regulations requiring it to share its network with rivals, and is losing customers to rival Grupo Televisa, S.A. (BMV: TLEVISA), Mexico's largest pay TV provider, which is able to offer joint TV, telephone, and Internet service.

Dell to Shut Down U.S. Factory, Shift Production to Mexico

Dell Inc. (NASDAQ:DELL) announced plans to shut down one of its U.S. production sites, a North Carolina facility that employes 900 workers, and transfer production to a new factory in Mexico.

Chile's Cencosud Announces Plan to Move Real Estate Division Offices to Basement of Unfinished Costanera Project

Cencosud S.A., one of Latin America's largest retailers, with 2008 revenues totalling US$10 billion, announced plans to move its real estate division into the basement its unfinished US$600 million mega-development, the Costanera Center, a project that has been dormant since the outbreak of the 2008 finanical crisis.

Mexico's CEMEX Takes Action Against Peru's Anti-Dumping Charges

Peruvian press sources today reported that Mexican cement producer Cemex, SA.B. de C.V. (NYSE:CX), the world's third largest cement producer with 2008 revenues worth US$22 billion, announced plans to take legal action after Peru's competition regulator, Indecopi, disclosed its decision to place anti-dumping charges worth US$62 per ton of cement on Cemex's exports to Peru.

Youtube Pledges to Help Mexico's War on Drugs with Innovative Campaign

Mexican press sources reported that representatives from Youtube, the internet video service owned by Google Inc. (NASDAQ:GOOG), stated that although the company would not take down or censor "narcocorrido" videos that glorify drug trafficking, it would work with a coaltion of Mexican NGOs, government representatives, and even telecoms tycoon Carlos Slim, to help create web content that shows the negative side of the drug trade.

Mexico's BIMBO Pledges to Absorb Costs of Proposed Tax Hike

GRUPO BIMBO S.A.B de C.V. (BMV:BIMBO), Mexico's largest bread producer, with 2008 net sales of US$7.4 billion, announced that it would absorb the cost of a proposed 2% tax hike proposed by Mexico's government, and pledged not to raise prices and pass the cost of the tax onto consumers.