Latin Day Ahead: Petrobras to Bow to Natura in Bovespa Changes

Brazil’s consumer stocks may benefit and commodity producers may lose as the stock exchange makes changes to the benchmark index; Foreign-exchange traders are losing faith that Mexico’s president will push through the tax increases needed to rein in the budget deficit; A rally in Argentine bonds signals increasing confidence the country will meet debt payments, Augustus Asset Managers Ltd. says; Venezuela’s closing of 32 radio stations is an example of “Cuban-style” repression, an executive said.

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Petrobras to Bow to Natura in Bovespa Index Changes: Week Ahead

Brazil’s consumer stocks from Natura Cosmeticos SA to Redecard SA may benefit and commodity producers such as Petroleo Brasileiro SA may lose as the stock exchange makes changes to the benchmark index.

Mexico Losing Trader Confidence as Peso Proves Worst Currency

Foreign-exchange traders are losing faith that Mexican President Felipe Calderon will push through the tax increases needed to rein in the budget deficit and stem a rout that has made the peso the worst-performing major currency in the past year.

Argentine Bond Rally Shows Default Concern Fading: Week Ahead

A rally in Argentine bonds that sent yields to their lowest levels in 10 months signals increasing confidence the South American nation will meet debt payments even as the economy slumps, Augustus Asset Managers Ltd. says.

Venezuela’s Radio, TV Closings Reduce ‘Freedom,’ Executive Says

Venezuela’s closing of 32 radio stations and two television broadcasters is an example of “Cuban-style” repression, an executive at a company that owns some of the stations said.

MAIN COMPANIES:

Brazil

Banco Bradesco SA (BBDC4 BS): Brazil’s second-biggest bank will likely report today that adjusted second-quarter profit fell to 1.73 billion reais ($928 million) from 2 billion reais, according to the average of four estimates calculated by Bloomberg News. Bradesco fell 0.7 percent to 29.55 reais.

Colombia

Enka de Colombia SA (ENKA CB): Relations between Venezuela and Colombia probably will return to normal within a few weeks, brokerage Interbolsa SA said July 31 in an e-mailed report. Venezuelan President Hugo Chavez said last week that he’d block Colombian imports after accusations by Colombia that Venezuela provided Swedish anti-tank weapons to Colombian guerrillas. Enka, which sells synthetic fiber to Venezuela, slid 1 percent to 8.22 pesos.

Interconexion Electrica SA (ISA) : The Colombian power company reported a 26 percent jump in first-half profit. Net income rose to 207.4 billion pesos from 164.5 billion pesos in the same period last year, the company wrote in a statement posted July 31 on the Web site of Colombia’s securities regulator. ISA rose 3.6 percent to 10,400 pesos.

Mexico

Cemex SAB (CEMEXCPO) : The largest cement maker in the Americas said bankers agreed to extend a covenant waiver to allow the company to complete a refinancing of $14.5 billion in debt. The extension of the waiver, which expired July 31, still needs to be formalized, Jorge Perez, a Cemex spokesman, said in an e-mailed response to questions. Cemex rose 0.1 percent to 12.43 pesos.

Coca-Cola Femsa SAB (KOFL) : Latin America’s largest Coco-Cola bottler said UBS Casa de Bolsa SA agreed to act as market maker for the company’s series L shares. UBS will act as market maker starting today, Coca-Cola Femsa said in a regulatory filing. Coca-Cola Femsa rose 0.7 percent to 61.26 pesos.

Grupo Mexico SAB (GMEXICOB) : Mexico’s copper output was little changed at 19,196 metric tons in May, the national statistics agency said July 31 on its Web site. Grupo Mexico, the country’s largest copper producer, rose 3.4 percent to 18.69 pesos.

LATIN AMERICAN MARKETS:

Brazil: Industrial output rose 0.4 percent in June after increasing 1.3 percent the previous month, according to the median estimate of nine economists in a Bloomberg survey. The national statistics agency is slated to publish its report at 8 a.m. New York time.

The real rose 0.9 percent to 1.8658 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 8.7 percent, according to Bloomberg prices.

Colombia: The central bank is scheduled to release its quarterly inflation report today. Bank chief Jose Dario Uribe is set to present the report in Bogota starting at 1 p.m. New York time.

The peso rose 0.4 percent to 2,036.60 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 fell three basis points to 8.87 percent, according to Colombia’s stock exchange.

Other prices in Latin American markets:

Argentina: The peso fell 0.1 percent to 3.8330 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 rose 10 basis points to 13.09 percent, according to Citigroup Inc.’s local unit.

Chile: The peso rose 0.2 percent to 540.72 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, fell two basis points to 2.88 percent, according to Bloomberg composite prices.

Mexico: The peso rose 0.5 percent to 13.2021 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 was unchanged at 8.41 percent, according to Banco Santander SA.

Peru: The sol fell 0.1 percent to 2.9860 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 rose two basis points to 5.35 percent, according to Citigroup Inc.’s local unit.

ECONOMIES: Brazil will publish FGV inflation numbers, industrial production, its July trade balance and PMI manufacturing; Mexico will report its IMEF manufacturing index.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net

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