Latin Day Ahead: Brazil Brokers Caught Off Guard on VisaNet IPO
Brazilian brokerages said they were surprised by their exclusion from the world’s biggest initial public offering this year; Emerging-market stocks posted the first back-to-back gains in two weeks; Standard Life Investments is buying the Brazilian real and the Australian dollar; Federal Reserve officials doused speculation they will pump more money into the economy to hold down interest rates.
TOP STORIES; MOST READ ON BLOOMBERG
Brazil Brokers Caught Off Guard as VisaNet Tests ‘Credibility’
Brazilian brokerages said they were surprised and confused by their exclusion from the world’s biggest initial public offering this year, part of a crackdown that a former International Monetary Fund economist said will bring “credibility” to Latin America’s biggest market.
Emerging-Market Stocks Advance a 2nd Day as South Korea Rallies
Emerging-market stocks posted the first back-to-back gains in two weeks after South Korea raised its gross domestic product forecast and better-than-estimated orders for U.S. durable goods boosted exporters.
Standard Life Buys Brazilian Real, Aussie Dollar, Sells Euro
Standard Life Investments, which oversees $194 billion in assets, is buying the Brazilian real and the Australian dollar , betting that a global recovery will spur demand for commodities from coal to soybeans.
Fed Douses Purchases Talk, Urges Investors to ‘Relax’
Federal Reserve officials, encouraged by signs the recession is easing, doused speculation they will pump more money into the economy to hold down interest rates, while indicating they’re not ready to begin a retreat.
Telecom Argentina SA (TECO2 AF): The Werthein family will evaluate the purchase of an additional stake in Telecom Argentina if it comes up for sale, Reuters reported, citing Adrian Werthein. Telecom Italia SpA and Argentina’s Wertheins each own 50 percent of the company that controls Telecom Argentina. The Italian company could consider offers for its stake in Telecom Argentina, Chief Executive Officer Franco Bernabe told reporters yesterday in Milan. Telecom Argentina rose 1.3 percent to 9.09 pesos.
Petroleo Brasileiro SA (PETR4) (PETR4 BS) and Vale SA (VALE3) (VALE5 BS): Petrobras, Brazil’s state-controlled oil company, and Vale, the world’s biggest iron-ore producer, may jointly explore for natural gas and other hydrocarbons off the coast of Brazil’s Espirito Santo state, Reuters said yesterday, citing an unidentified person. Petrobras fell 1.3 percent to 31 reais, and Vale fell 2.4 percent to 29.48 reais.
Triunfo Participacoes & Investimentos SA (TPIS3 BS): The Brazilian highway and port operator said in a regulatory filing its board approved plans to sell 350 million reais ($178 million) in bonds. TPI rose 3 percent to 2.78 reais.
Sociedad Quimica y Minera de Chile SA (SQM/B CC): Chile’s biggest fertilizer producer may rise to 24,500 pesos by the end of next year, Banchile Inversiones analysts including Christian Contreras wrote yesterday in a note, reiterating a “buy” rating. Soquimich fell 0.7 percent to 18,555 pesos.
Corporacion Durango SAB (CODUSA* MM): Two U.S. units of the Mexican papermaker, which sought Chapter 11 protection in October, had their reorganization plans approved by a bankruptcy judge in New York. Durango fell 7.4 percent to 6.50 pesos.
Corporacion Interamericana de Entretenimiento SAB (CIEB MM): Mexico’s largest entertainment company plans to raise 1.2 billion pesos ($90.2 million) from the sale of shares to existing investors to pay debt. Shareholders will be offered stock at 6 pesos a share, the company said in a statement to the Mexican Stock Exchange. CIE, as the company is known, fell 6.7 percent to 6.84 pesos.
LATIN AMERICAN MARKETS:
Brazil: The unemployment rate rose to 9 percent in May from 8.9 percent the previous month, according to the median of 20 estimates in a Bloomberg survey. The national statistics agency is scheduled to release the report at 8 a.m. New York time.
The real rose 0.5 percent to 1.9690 per dollar.
The yield on the zero-coupon, real-denominated bond due in January 2010 fell two basis points, or 0.02 percentage point, to 8.87 percent, according to Banco Votorantim.
Colombia: The nation’s gross domestic product declined 1.3 percent in the first quarter, after dropping 0.7 percent in the previous period, according to the median of 18 estimates in a Bloomberg survey of economists. The country’s statistics agency is slated to publish the report today.
The peso fell 0.7 percent to 2,174.23 per dollar.
The yield on Colombia’s benchmark 11 percent bonds due July 2020 fell six basis points to 9.48 percent, according to Colombia’s stock exchange.
Other prices in Latin American markets:
Argentina: The peso was little changed at 3.79 per dollar.
The yield on the country’s inflation-linked peso bonds due in December 2033 fell 30 basis points to 15.94 percent, according to Citigroup Inc.’s local unit.
Chile: The peso rose 0.4 percent to 532.10 per dollar.
The yield for a basket of Chilean 10-year peso bonds in inflation-linked currency units, called unidades de fomento, climbed seven basis points to 2.95 percent, according to Bloomberg composite prices.
Mexico: The peso gained 0.4 percent to 13.3017 per dollar.
The yield on Mexico’s 10 percent bond due December 2024 fell three basis points to 8.6 percent, according to Banco Santander SA.
Peru: The sol was little changed at 3.0235 per dollar.
The yield on Peru’s 8.6 percent bond maturing August 2017 was unchanged at 5.65 percent, according to Citigroup Inc.’s unit in Lima.
ECONOMIES: Brazil will announce FGV consumer confidence, May unemployment, total outstanding loans and private bank lending; Venezuela will publish industrial production and retail sales; Mexico will release retail sales figures and Colombia will publish first-quarter gross domestic product.
To contact the reporter on this story: Laura Price in London at email@example.com
To contact the editor responsible for this story: David Papadopoulos in New York at firstname.lastname@example.org