Latin Day Ahead: Fiat Calls for Tax-Break Extension in Brazil

Fiat SpA wants the Brazilian government to extend tax breaks for new car buyers next year; GVT (Holding) SA probably will be acquired at a price less than its current level, according to BlackRock Inc.; Itau Unibanco Holding SA said profit in the third quarter was 2.27 billion reais ($1.27 billion); Organizacion Soriana SAB was raised to “buy” from “sell” at Citigroup Inc.; Endesa SA said nine- month profit fell 55 percent as power generation dropped and it had smaller gains from asset sales.

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Fiat Calls for Tax-Break Extension in Brazil to Boost Car Sales

Fiat SpA wants the Brazilian government to extend tax breaks for new car buyers next year to boost sales in its most profitable market.

GVT Will Be Bought Below Market Price, Landers Says: Week Ahead

GVT (Holding) SA, the Brazilian telephone company that received takeover bids from Vivendi SA and Telefonica SA, probably will be acquired at a price less than its current level, BlackRock Inc. said.

Itau Unibanco Posts Third-Quarter Profit of 2.27 Billion Reais

Itau Unibanco Holding SA, Brazil’s second-largest bank, said profit in the third quarter was 2.27 billion reais ($1.27 billion), according to a filing to Brazil’s securities regulator.

Soriana of Mexico Raised to ‘Buy’ From ‘Sell’ at Citigroup

Organizacion Soriana SAB was raised to “buy” from “sell” at Citigroup Inc., which cited the outlook for earnings, a reduction in the retailer’s financial leverage and a recent drop in the shares.

Endesa Nine-Month Net Drops 55% as Electricity Generation Falls

Endesa SA, Spain’s second-largest utility, said nine-month profit fell 55 percent as power generation dropped and it had smaller gains from asset sales.

MAIN COMPANIES

Brazil

Cia Energetica de Minas Gerais (CMIG4 BS): Brazil’s second- largest power generator and distributor will pay about 100 million reais ($57 million) for assets in companies including Empresa Norte de Transmissao de Energia SA and Empresa Regional de Transmissao de Energia SA, Chief Financial Officer Luiz Fernando Rolla said. Cemig, as the state-controlled utility is known, fell 2.6 percent to 27.51 reais.

Empresa Brasileira de Aeronautica SA (EMBR3 BS): The world’s fourth-biggest aircraft maker was downgraded to “market perform” from “outperform” at Bradesco Corretora. Embraer fell 11 percent to 8.94 reais.

Profarma Distribuidora de Produtos Farmaceuticos SA (PFRM3 BS): The Brazilian distributor of pharmaceutical products said it plans to buy back up to 1.4 million common shares, or 10 percent of the 14.6 million shares on the market. Profarma fell 1 centavo to 15.97 reais.

Vale SA (VALE5) (VALE5 BS): The world’s biggest iron-ore producer, was downgraded to “hold” from “buy” at Raymond James & Associates Inc. on the stock’s valuation. Vale fell 4 percent to 39.45 reais.

Mexico

Desarrolladora Homex SAB (HOMEX*) : Mexico’s largest homebuilder had its forecast for American depositary receipts cut 15 percent to $46 at Oscar Gruss & Son Inc. Oscar Gruss analyst Peter Lyons reiterated his “buy” rating for Homex, saying the company may increase market share as the industry consolidates. Homex fell 3 percent to 78.22 pesos.

Peru

Banco de Credito del Peru (CREDITC1 PE): The Andean country’s largest lender is scheduled to offer about $100 million in five-year notes in Santiago today in the second issue by a company based outside the country. Banco de Credito fell 2.3 percent to 8.5 soles. LATIN AMERICAN MARKETS:

Brazil: Industrial output rose 1.7 percent in September from August, according to the median of 26 economists in a Bloomberg News survey. The national statistics agency will release the report at 6 a.m. New York time.

The real fell 0.2 percent to 1.7640 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 fell one basis point to 8.66 percent on Oct. 30, according to Bloomberg prices.

Mexico: The country’s manufacturing index rose to 52 in October from 51.6 in September, according to the median forecast of six economists in a Bloomberg News survey. The Mexican Institute of Financial Executives, or IMEF, is scheduled to release the report at 1 p.m. New York time.

The peso fell 0.1 percent to 13.2156 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 rose three basis points to 8.26 percent on Oct. 30, according to Banco Santander SA.

Other prices in Latin American markets:

Argentina: The peso fell 0.2 percent to 3.8242 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 rose six basis points to 11.53 percent, according to Citigroup Inc.’s local unit.

Colombia: The peso rose 0.1 percent to 1,993.30 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose one basis point, or 0.01 percentage point, to 8.40 percent on Oct. 30, according to Colombia’s stock exchange.

Chile: The peso rose 0.4 percent to 528.45 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, fell four basis points to 2.97 percent, according to Bloomberg composite prices.

Peru: The sol gained 0.2 percent to 2.9025 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 rose four basis points to 4.92 percent, according to Citigroup Inc.’s unit in Lima.

ECONOMIES: Brazil will report September industrial production, October vehicle sales and its monthly trade balance; Mexico will post IMEF manufacturing figures; Argentina will release its October government tax revenue; Colombia will publish October producer prices; Venezuela will post October consumer prices.

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 at papadopoulos@bloomberg.net

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