Latin Day Ahead: Telmex to Absorb Mexico Phone Package Taxes

Telefonos de Mexico SAB will absorb the costs of new Mexican taxes for subscribers to phone and Internet packages; Venezuelan President Hugo Chavez’s threats to seize banks should be taken at “face value,” Goldman Sachs Group Inc.’s Alberto Ramos said; Aluar Aluminio Argentino SAIC plans to boost output by a quarter within two years; Fibria Celulose SA was upgraded to “neutral” from “underperform” at Credit Suisse Group AG.

TOP STORIES; MOST READ ON BLOOMBERG

Telmex Will Absorb Mexican Taxes for Phone and Web Packages

Telefonos de Mexico SAB, the phone company controlled by Carlos Slim, will absorb the costs of new Mexican taxes for subscribers to phone and Internet packages.

Chavez Bank Threats Should Be Taken at ‘Face Value,’ Ramos Says

Venezuelan President Hugo Chavez’s threats to seize banks as part of a drive to nationalize strategic parts of the economy should be taken at “face value,” Goldman Sachs Group Inc.’s Alberto Ramos said.

Brazil Demand Girds Aluar to Be top South America Metals Maker

Aluar Aluminio Argentino SAIC, Argentina’s biggest aluminum producer, plans to boost output by a quarter within two years to 520,000 tons, becoming the single largest smelter in Latin America as Brazilian demand surges.

Fibria Raised to Neutral at Credit Suisse; Price Estimate $19

Fibria Celulose SA, the world’s largest pulp maker, was upgraded to “neutral” from “underperform” at Credit Suisse Group AG. The brokerage raised its price estimate to $19 from $15, citing higher pulp prices in the next three years, merger synergies and a stronger Brazilian currency.

MAIN COMPANIES

Argentina

Mirgor Sacifia (MIRG) : Argentine car sales fell 6.3 percent in November from October to 37,450 units, the Argentine Association of Car Dealers said in an e-mailed statement. Mirgor, which makes climate-control systems for vehicles, fell 0.5 percent to 57.9 pesos.

YPF SA (YPFD) : Repsol YPF SA workers plan to strike for 24 hours on Dec. 3 in the Argentine oil production area of the Neuquen basin to demand salary increases, union leader Manuel Arevalo said in a phone interview from the city of Neuquen. YPF, the Spanish company’s local unit, rose 2.1 percent to 148 pesos.

Brazil

Renar Macas SA (RNAR3) (RNAR3 BS): The Fraiburgo-based apple producer agreed to acquire Pomifrai Fruticultura SA, in an all- shares accord. Renar will exchange Pomifrai shares for 30 million of its common shares, or the equivalent to 27 percent of its capital, according to a regulatory filing. Renar rose 1 percent to 1 real.

Telemar Norte Leste SA (TMAR5 BS): Brazil’s largest phone company plans to sell 2.25 billion reais ($1.31 billion) of local bonds in two tranches due in 2015 and 2020, it said in a regulatory filing. Telemar was little changed, slipping 2 centavos to 63 reais.

Chile

Lan Airlines SA (LAN) : Latin America’s biggest air carrier by market value was given an end-2010 share price estimate of 9,280 pesos at CorpResearch, which reiterated the stock at “buy.” Lan rose 2.8 percent to 8,014.7 pesos.

Colombia

Ecopetrol SA (ECOPETL) : Colombia’s state-run oil company may double the proceeds of a $3.3 billion share offering two years ago through the sale of a further stake next year, Chief Financial Officer Adriana Echeverri said. Ecopetrol rose 0.6 percent to 2,560 pesos.

Mexico

Controladora Comercial Mexicana SAB (COMERUBC) : The supermarket chain that defaulted on debt a year ago said some creditors agreed to extend the deadline for a debt swap to Jan. 31. The Mexico City-based company known as Comerci announced the extension in an e-mail to the Mexican Stock Exchange. Comerci rose 2.9 percent to 11.29 pesos.

LATIN AMERICAN MARKETS:

Mexico: The manufacturing index rose to 53 in November, from 52.9 the previous month, according to the median estimate of six economists in a Bloomberg survey. The non-manufacturing index increased to 52.5 last month from 52.2 in October, according to the median forecast of the six analysts. The Mexican Institute of Financial Executives, or IMEF, is slated to release its report at 1 p.m. New York time.

The peso gained 0.9 percent to 12.7418 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 rose seven basis points, or 0.07 percentage point, to 8.13 percent, according to Banco Santander SA.

Other prices in Latin American markets:

Argentina: The peso was little changed at 3.8115 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 rose six basis points to 11.05 percent, according to Citigroup Inc.’s local unit.

Brazil: The real strengthened 0.1 percent to 1.7186 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2011 rose 10 basis points to 10.38 percent, according to Bloomberg prices.

Chile: The peso slid 1.3 percent to 503.40 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, was little changed at 3.28 percent, according to Bloomberg composite prices.

Colombia: The peso dropped 0.1 percent to 1,993 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose three basis points to 7.88 percent, according to Colombia’s stock exchange.

Peru: The sol declined 0.1 percent to 2.8795 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 fell two basis points to 4.97 percent, according to Citigroup Inc.’s unit in Lima.

ECONOMIES: Mexico will publish its November IMEF manufacturing index; Argentina will release November vehicle sales and government tax revenue; Colombia will post November producer prices and Bolivia will post 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.