Tag Archives: Colombia

EMERGING MARKETS-Asset Latam recovers from recent losses, Petrobras rebound supports stocks | Instant News


    * Drop in U.S. yields helps risk assets
    * Brazil stocks recover from worst day in 10 months
    * Mexican peso rises for first time in 7 sessions

 (Adds details, updates prices)
    By Susan Mathew
    Feb 23 (Reuters) - Brazil shares rose on Tuesday as oil
major Petrobras bounced back from a bruising sell-off, with most
Latin American assets recovering from a slew of recent losses as
pressure from high U.S. yields eased. 
    The Bovespa stock index rose 2.1% after a near 5%
slide on Monday, as shares in Petroleo Brasileiro
recovered 10% from a 22% plunge that wiped out 71 billion reais
($13 billion) in market value. 
    Petrobras' board is set to meet on Tuesday to rule on
Brazilian President Jair Bolsonaro's appointment of former
Defense Minister Joaquim Silva e Luna to helm the state-run
firm.
    "Bolsonaro's decision to replace Petrobras' CEO is dashing
hopes of Brazil's return to economic orthodoxy," said
strategists at BCA Research. Analysts broadly note that the
president is adopting populist policies instead of fiscal
consolidation ahead of elections 20 months down the line.
    "The central bank is likely to lift the policy rate in
response... which would keep government borrowing costs above
the nominal GDP growth rate," they said. "A violation of the
fiscal spending rule would weigh further on the real amid higher
inflation expectations, and bonds are likely to underperform as
rates rise." 
    The real rose 0.3% after marking its worst
session in a month on Monday, while dollar bonds and the cost to
insure exposure to Brazil's sovereign debt steadied following
dramatic falls on Monday.
    Charts show that Brazil's weighting is declining in the main
JPMorgan EM bonds index.   
    A recent spike in U.S. treasury yields had weighed on
risk-driven assets, particularly emerging market bonds and
currencies, as investors sought safer investment paths. Latin
American assets fell the most among their peers.
    But yields dropped on Tuesday after Federal Reserve Chairman
Jerome Powell said the economy still needed central bank
support.
    "One reason for Latam FX struggles may be that markets
expect that an inflation overshoot in the U.S. would spill over
to other economies, and would be harder to contain in Latam,
where central bank credibility is perceived to be weaker," said
Ilya Gofshteyn, senior EM macro strategist at Standard
Chartered.
    Mexico's peso rose for the first time in seven days
against a stronger dollar. The peso lost 3.7% over the last six
days on concerns about factory activity as fuel supply from
Texas was impacted by a deep freeze.
    Chile's peso, which has outperformed its regional
peers thanks to strength in the copper price, extended gains
into an eight consecutive session. 
    
    Key Latin American stock indexes and currencies:
    
                              Latest     Daily % change
 MSCI Emerging Markets         1393.90             -0.27
                                        
 MSCI LatAm                    2330.32              2.07
                                        
 Brazil Bovespa              114975.20              2.05
                                        
 Mexico IPC                   45274.80              0.73
                                        
 Chile IPSA                    4506.23             -1.38
                                        
 Argentina MerVal             47672.85            -3.239
                                        
 Colombia COLCAP               1351.21             -0.07 Currencies             Latest     Daily % change
 Brazil real                    5.4380              0.30
                                        
 Mexico peso                   20.5595              0.75
                                        
 Chile peso                      705.4              0.14
                                        
 Colombia peso                 3583.72              0.20
 Peru sol                       3.6517              0.00
                                        
 Argentina peso                89.5300             -0.10
 (interbank)                            
                                        
 
    
 (Reporting by Susan Mathew and Sruthi Shankar in Bengaluru,
graphic by Marc Jones in London; Editing by Nick Macfie and
Rosalba O'Brien)
  

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THE EMERGING MARKET-Brazil stocks hit by fears of government interference, FX falls | Instant News


    * Petrobras, Bovespa set for worst day since March
    * Coronavirus aid extension in Brazil to be discussed this
week
    * Mexican peso down for sixth straight session 
    * Chile's peso sole gainer 

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Feb 22 (Reuters) - Brazil's benchmark Bovespa index tanked
on Monday as oil major Petrobras plummeted 21% following the
ouster of its investor-backed chief executive, while Latin
American stocks and currencies fell as higher inflation
expectations hurt sentiment. 
    After weeks of sparring between CEO Roberto Castello Branco
and Brazilian President Jair Bolsonaro on fuel prices, former
Defense Minister and retired army general Joaquim Silva e Luna,
who has no oil and gas experience, was appointed to take over.

    Branco's ouster could force a broader shakeup at Petrobras,
which has steered toward more market-friendly and less
politically driven policies in recent years.
    Petrobras shares were on course to
post their sharpest one-day decline since March last year, as
was the Bovespa, which sank nearly 4%.  
    "The reversal of these types of practices by Bolsonaro early
in his administration was a key credit positive for Brazil's
quasi-sovereigns," said Citigroup strategists. 
    "A reversal of this policy is a clear credit negative."
    Banco do Brasil, caught up in a spat with
Bolsonaro over branch closings, slumped 11%, while power company
Eletrobras skidded nearly 3% amid signs of the
president's interference in the power sector.

    Brazil's real fell as much as 2.8%, hitting
lows not seen since November last year, while the cost to insure
exposure to Brazil's sovereign debt jumped 22 basis points from
Friday's close.
    "Local assets will underperform across the board in the very
short-term," Citigroup warned, adding that a break in the key
5.50 level of dollar-real pair could see further continuation of
weakness in the real.  
   Investors also have their eyes on a discussion regarding an
extension of Brazil's emergency aid bill this week, with eyes on
cost cuts elsewhere to keep spending within the limit.

    Worries about stretched fiscal spending have caused the real
to lag its emerging market peers widely in 2020. This year, the
currency is down about 6% so far.  
    Other currencies in Latin America also
dropped, pressured by rising U.S. Treasury yields and inflation
expectations.
    Higher U.S. yields pressure risk-driven assets by offering
relatively stronger and safer returns. 
    In its sixth straight day in the red, Mexico's peso
hit its lowest since early November as a deep freeze in Texas
continued to raise concerns about a hit to factory activity in
the country.
    A corresponding surge in oil prices failed to support the
peso, while Colombia's peso also dropped.
    Surging copper prices saw Chile's peso as the only
gainer for the day. 
        
    Key Latin American stock indexes and currencies:
    
                              Latest      Daily % change
 MSCI Emerging Markets         1402.48               -1.93
                                        
 MSCI LatAm                    2311.50                -3.8
                                        
 Brazil Bovespa              114019.83               -3.72
                                        
 Mexico IPC                   45035.62                 0.3
                                        
 Chile IPSA                    4569.36               -1.18
                                        
 Argentina MerVal             49446.07              -3.033
                                        
 Colombia COLCAP               1348.63               -0.29 Currencies             Latest      Daily % change
 Brazil real                    5.4412               -1.08
                                        
 Mexico peso                   20.6505               -1.09
                                        
 Chile peso                      706.1                0.27
                                        
 Colombia peso                    3591               -0.60
 Peru sol                       3.6518                0.00
                                        
 Argentina peso                89.4300               -0.30
 (interbank)                            
                                        
 
    
 (Reporting by Susan Mathew in Bengaluru; Editing by Steve
Orlofsky and Dan Grebler)
  

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AN EMERGING MARKET – Troubles in Petrobras weigh on Bovespa; The Mexican peso expands the deep freeze slide | Instant News


    * Petrobras shares slide 5% as CEO resists pressure to
resign
    * Mexican peso down for 5th straight day; set for 2% weekly
loss
    * Mexico's government readying ~$5 bln Pemex lifeline
-source 

    By Susan Mathew
    Feb 19 (Reuters) - Brazil's Bovespa slid on Friday as oil
major Petrobras slumped on concerns about top management, while
Mexico's peso fell for a fifth straight session as the effects
of a deep freeze in the neighboring state of Texas spilled over
into Mexico, hindering factories.
     Shares of Petroleo Brasileiro slid
around 5%, on course for their worst session since October as
its chief executive resisted pressure from Brazil's President
Jair Bolsonaro to resign following tensions over rising fuel
prices.
    While Bolsonaro has expressed sympathy for truckers
threatening to strike over higher diesel prices, Castello Branco
said their complaints were not the company's problem and
insisted that Petrobras will set prices independently of
political pressure.
    Underperforming regional peers, the Bovespa index
slipped 0.9%, putting it on track for a 1% weekly decline. 
    Brazil's real, meanwhile rose 0.9% against a softer
dollar, but as is the case with most emerging market currencies,
looked to post declines on the week as rising U.S. Treasury
yields squeezed risk assets.
    Brazil's Congress will next week analyze a constitutional
amendment that aims to revive emergency cash transfers to
millions, while examine cuts elsewhere to stop from breaching a
spending cap. The country's stretched fiscal status has weighed
on interest in Brazil's financial markets.
    Mexico's peso weakened 0.5% as investors worried
about a hit to the country's manufacturing sector. More
companies halted production in Mexico due to power blackouts
caused by Texas limiting fuel supply owing to the cold wave
there.
    Electric power and water service slowly resumed at darkened
oilfields and refineries in Texas on Friday.

    The peso has lost about 2% over the last five sessions. 
    Meanwhile, Reuters exclusively reported that Mexico's
government is planning to inject a total of about $5 billion
into state oil company Petroleos Mexicanos (Pemex) this year.

    But market experts were less than enthused. 
    "This is in line with our expectations as well as the long
standing government approach of offering ad hoc assistance to
Pemex without fixing the core problems," said Citigroup
strategists. 
    Concerns about the weight of bailing out the firm on
Mexico's economy have led to downgrades by rating agencies of
both the firm and Mexico's sovereign credit rating. 
    Copper prices rallied and top producer Chile's peso
firmed to six-week highs, while sliding oil prices weighed on
crude exporter Colombia's peso.
    
    Key Latin American stock indexes and currencies:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1429.63     0.32
                                   
 MSCI LatAm               2394.33     0.56
                                   
 Brazil Bovespa         118150.93    -0.88
                                   
 Mexico IPC                     -        -
                                   
 Chile IPSA               4546.74     0.62
                                   
 Argentina MerVal        51955.35    0.248
                                   
 Colombia COLCAP          1355.34     0.12
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.3941     0.85
                                   
 Mexico peso              20.4028    -0.56
                                   
 Chile peso                 704.6     0.82
                                   
 Colombia peso            3548.51    -0.10
                                   
 Peru sol                  3.6517    -0.02
                                   
 Argentina peso           89.1400    -0.09
 (interbank)                       
                                   
 
 (Reporting by Susan Mathew in Bengaluru;)
  

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Colombia, Mexico launch vaccines, Brazil vaccine shortage | Coronavirus Pandemic News | Instant News


Chief nurse Veronica Luz Machado, who has been battling the coronavirus pandemic for months from an intensive care unit in the northern city of Sincelejo, became the first person in the Andean country to receive a COVID-19 vaccine on Wednesday.

Starting with Machado, Colombia will embark on its plan to immunize 35.2 million people with a vaccine obtained through a series of bilateral agreements supported by the World Health Organization. COVAX mechanism.

“The pandemic has completely changed our lives, especially for me and my colleagues, because we are facing an unknown virus, we don’t know how to respond,” Machado, who works at Universitario Hospital, said in a government broadcast earlier this week. , before receiving the first injection of the Pfizer-BioNTech two-dose vaccine.

“This is a risk that health workers face every day when we leave home to work in what we enjoy, in what we love. I was very scared, ”Machado, a nurse for more than two decades, added.

Veronica Machado, 46, chief nurse of the Universitario de Sincelejo Hospital receives a dose of Pfizer / BioNTech vaccine [Colombian Presidency via Reuters]

For Machado, the vaccine carries hope following nearly a year of coronavirus cases in Colombia, which has reported more than 2.2 million infections and 57,949 deaths, according to data compiled by Johns Hopkins University. The country has a population of about 50 million people.

“Today starts a new chapter, in which this pandemic is defeated. This chapter starts with mass vaccination, safe, effective and free across the country, ”said President Ivan Duque who attended Machado’s first injection.

The first phase of Colombia’s vaccination will benefit health workers and those aged 80 and over.

The government plans to immunize one million people during the first month of inoculation, which is described as the biggest public health challenge in the country’s history.

The first 50,000 doses of Pfizer arrived in Colombia on Monday, while a second batch of 192,000 doses of China’s Sinovac Biotech is expected to arrive later this week, Duque said in a message on Twitter earlier this week.

Meanwhile, Mexico, which has surpassed two million confirmed coronavirus cases and 175,000 deaths, has just started vaccinating old. Officials said some 189,000 doses had been given in the first two days of the campaign. There are about 15.7 million people over the age of 60 who need injections.

Elderly residents rest after receiving the vaccine for the AstraZeneca coronavirus disease (COVID-19), in the municipality of Milpa Alta in Mexico City, Mexico [Edgard Garrido/Reuters]

Mexico has only received about 1.9 million doses of Pfizer and Oxford-AstraZeneca vaccines so far, enough for about one million people in a country of 126 million.

On Tuesday, Secretary for Foreign Relations Marcelo Ebrard said Mexico would raise the issue of unequal access to vaccines among countries at the UN Security Council on Wednesday.

Ebrard complained that countries that produce vaccines have far greater access to injections than those that don’t.

Rio de Janeiro suspended new vaccinations for a week on Wednesday because of a shortage of doses, one of Brazil cities that are in short supply and demand help from the Brazilian federal government.

City officials in Rio said they would continue to give those who had had one shot a second dose but were stopping new injections for the elderly.

Other state capitals have had to adopt a similar strategy, such as Salvador, in the northeastern state of Bahia, and Cuiaba, in Mato Grosso state. Shadow shortages have also been reported in at least four other capitals, according to Brazilian newspaper O Globo.

A health worker from the Sanitation District for the Indigenous People of Manaus administers the CoronaVac Sinovac vaccine to an ethnic Mura man in Makira village in the Rio Urubu community in Itacoatiara, Amazonas state [Bruno Kelly/Reuters]

Officials said the vaccine for the new recipients was partially depleted because they had advanced their schedule by one week after receiving many new doses. Rio Mayor Eduardo Paes said on Monday that additional fire would not be fired before next week.

“We are ready and have vaccinated 244,852 people,” he said on his official Twitter profile. “We just need a vaccine to arrive.”

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Joint Statement by Foreign Ministers of France, Germany, Italy, Britain and the United States – Rocket attack in Erbil (16 February 2021) | Instant News


We, the foreign ministers of France, Germany, Italy, Great Britain and the United States strongly condemn the February 15 rocket attack on Iraq’s Kurdistan Region. We extend our condolences to the victims, their families and the Iraqi people. Together, our governments will support the Government of Iraq’s investigation into the attacks with a view to holding those responsible to account. We are united in our view that attacks on the US and Coalition personnel and facilities will not be tolerated.

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