Tag Archives: Market Events

THE EMERGING MARKET – Brazilian real tumbles on soaring unemployment, set for the best month in 2021 | Instant News


    * Real jumps 4% in April, best month since November
    * Unemployment in Brazil soars to record highs
    * Mexican economy grows 0.4% in 1st quarter, beats
expectations

    By Shashank Nayar
    April 30 (Reuters) - Brazil's real dropped on Friday as
unemployment jumped to record levels and a spike in coronavirus
deaths dented sentiment, although expectations of interest rate
hikes and a weak dollar led the currency to gain most among its
Latin American peers in April.
    The real dropped 1.3% after unemployment
soared to a record 14.4 million in the three months through
February, statistics agency IBGE said.
    Brazil on Thursday became the second country to pass 400,000
COVID-19 deaths after the United States, and experts warned the
daily toll could remain high for several months due to slow
vaccinations and loosening social restrictions.
    "The COVID outbreaks in India and Brazil and the recent slip
in global mobility might inject some caution or pause the risk
rally, especially if data starts to miss expectations," said
Mark McCormick, global head of FX strategy at TD Securities.
    
    However, the real was set to record its highest monthly gain
since November last year, led by a weakening dollar, strong iron
ore prices and as expectations of high inflation pointed to more
interest rate hikes.
    MSCI's index of Latin American currencies
was down 0.8% on Friday, but gained for a fifth straight week,
and rose nearly 3.3% this month, its best performance since
December last year. 
    Latam stocks gained 4.4% in April in their
best month since December.
     Mexico's peso dropped 0.6%, while a jump in economic
growth in the first quarter based on a preliminary estimate from
the national statistics agency helped prevent further
losses.
    The Colombian peso dropped 0.3% ahead of a central
bank meeting later on Friday when the bank is expected to leave
its benchmark interest rate unchanged as part of an expansive
monetary policy while also evaluating the country's economic
recovery and inflationary outlook.
    Most other Latin American currencies also dropped against
the dollar with the Chilean and Argentine pesos
down 0.5% and 0.1% respectively, while the Peruvian sol
eased 0.2%
    Peruvian front-running left-wing presidential candidate
Pedro Castillo was rushed to a clinic in Lima on Thursday due to
a "respiratory" illness, forcing him to suspend campaigning, the
candidate's party said on social media.
    The dollar index, a measure of the greenback's value
against a basket of its major peers, rose 0.4%, leaving it set
to end the week flat, although still down 2.56% for the month as
a whole.
    Key Latin American stock indexes and currencies:
    
                              Latest        Daily % change
 MSCI Emerging Markets         1350.63                   -1.02
                                        
 MSCI LatAm                    2401.02                    -1.3
                                        
 Brazil Bovespa              119476.88                   -0.49
                                        
 Mexico IPC                   48501.92                   -0.81
                                        
 Chile IPSA                    4551.42                     0.2
                                        
 Argentina MerVal             49643.43                  -0.842
                                        
 Colombia COLCAP               1270.12                   -0.62 Currencies             Latest        Daily % change
 Brazil real                    5.4026                   -1.27
                                        
 Mexico peso                   20.1540                   -0.57
                                        
 Chile peso                      712.5                   -0.51
                                        
 Colombia peso                 3723.25                   -0.27
 Peru sol                       3.7928                   -0.21
                                        
 Argentina peso                93.5500                   -0.05
 (interbank)                            
                                        
 

    
 (Reporting by Shashank Nayar in Bengaluru; Editing by Ken
Ferris)
  

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UPDATE 1 – Norwegian Air considers demand for travel to Europe ahead of pandemic in 2023-24 | Instant News



(Add quote, context, details) OSLO, April 29 (Reuters) – Low-cost airline Norwegian Air expects demand for European short-haul travel to return to pre-pandemic levels in 2023 or 2024, she said, presenting a pre-tax in the first quarter. loss of Kroner 1.19 billion ($ 145 million) on Thursday. The carrier this month announced plans to raise KKr 6 billion in new capital, up from Kroner 4.5 billion originally planned, as part of a program to exit court-ordered bankruptcy protection. “The demand for short-haul travel in Europe is not expected to return to 2019 levels before 2023 or 2024 and therefore Norwegian will deploy its capacity in the market at a pace that matches this,” said the airline in a statement. Funded largely by debt, Norwegian Air grew rapidly, serving routes across Europe and to North and South America, Southeast Asia and the Middle East before the COVID-19 pandemic does not plunge the airline into crisis. N Once travel restrictions are lifted, it plans to increase operations to a peak of around 50 short-haul jets in 2021 and around 70 short-haul jets in 2022, he said on Thursday. . The capital increase is expected to end “on or around” May 26, he added, referring to the day when Norwegian Air is due to leave Irish examiner status and Norwegian reconstruction processes. . ($ 1 = 8.2093 Norwegian crowns) Reporting by Gwladys Fouche Editing by Terje Solsvik and David Goodman.



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EXCLUSIVE-Nubank Brasil prepares a list of US-source stock markets | Instant News


NEW YORK / SAO PAULO, April 23 (Reuters) – Brazilian digital bank Nubank has begun preparations for its earliest possible listing of the US stock market this year, according to people with knowledge of the matter.

This will be one of the biggest stock market debuts of a South American company in recent years. Nubank was valued at about $ 25 billion in a private fundraising round in January, more than double its valuation.

Nubank, whose official name is Nu Pagamentos SA, is working with advisers on an initial public offering in New York, the sources said, requesting anonymity because the plans are confidential.

“We will probably do an IPO at some point in time, but that is not one of our priorities at the moment. We have the support of an extraordinary group of investors who have a long-term vision for our business, ”said Nubank in an emailed statement. They declined to comment specifically on the timeline or preparations for its IPO.

Sao Paulo-based Nubank was founded in 2013 by David Velez, a Colombian Stanford graduate, as a purple credit card issuer with no annual fees.

Since then, it has acquired more than 35 million clients, launched new financial products such as current accounts and loans, and expanded throughout Latin America. Over the past seven years, it has raised $ 1.2 billion in multiple funding rounds.

Nubank ended 2020 with a net loss of 230.2 million reais ($ 41.9 million), down from 312.7 million reais from the previous year.

Nubank’s investors include venture capital firm Dragoneer Investment Group, Ribbit Capital, Tencent Holdings Ltd and Tiger Global Management, as well as the Founders Fund, which is backed by billionaire Peter Thiel.

$ 1 = 5.4945 reais Reporting by Joshua Franklin in New York and Carolina Mandl in Sao Paulo; Edited by David Gregorio

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THE EMERGING MARKET – the Peru Sol is sinking because of the most likely socialist presidency; Petrobras rallies | Instant News


    * Citi downgrades Peru to "market weight" 
    * Window for a recovery Colombian peso fading - JPM
    * New Petrobras CEO seeks to maintain previous pricing
policy 
    * Braskem jumps on M&A speculation
    * EM assets set for lift after choppy start to 2021 -
Blackrock

 (Updates prices)
    By Susan Mathew
    April 19 (Reuters) - Peru's sol posted its worst session in
five months on Monday after the first poll ahead of a June
presidential run-off election indicated a socialist win, while
most other Latin American currencies rallied as the dollar
declined sharply. 
    The sol lost 1% after Sunday poll from Ipsos Peru
showed Pedro Castillo, the surprise winner of the first round
vote earlier this month, in pole position to win the presidency
in June, showing him with 42% support against 31% for right-wing
rival Keiko Fujimori.
    "Fujimori's path to bridge the gap will not be easy due to
her high rejection rate. We believe this opens the space for
further negative repricing in Peruvian assets," said strategists
at Citi Research. 
    "We move Peru back to market weight."
    Colombia's peso fell after three straight days of
gains. Ratings agency Fitch on Monday said Colombia's $6.4
billion tax reform, sent to Congress last week, is key for the
country's bonds to retain investment grade.
    "Our concern is that the window for a COP recovery is fading
as the debate domestically switches to fiscal reform, amid
investor concerns over the country's twin deficits," analysts at
JPMorgan said in a note. 
    "If anything, risks are skewed toward the reform being
watered down over the coming month, which will present another
headwind for COP outperformance." 
    As the greenback decline against most rivals,
Brazil's real gained for a fifth straight session
- its longest winning streak in almost a year, while Mexico's
peso notched three-month highs.
    Data on Monday showed Mexico's economy shrank by more than
2% in March, but analysts expect a rebound in subsequent
months. 
    As copper scaled decade highs, top producer Chile's peso
 tacked on 0.4%. Rising copper prices have made Chile's
currency one the best performing Latam units so far this year,
up 1.6% compared to a 6.4% drop for Brazil's real.
    The BlackRock Investment Institute said on Monday the
economic restart, stabilising U.S. Treasury yields and
relatively cheap valuations will boost EM assets after a choppy
start to 2021.
    With Wall Street's main indexes declining, most Latam
bourses fell with Brazil's Bovespa stocks index breaking
a five-day winning streak.
    But oil major Petrobras jumped 6% after its new
chief executive said he sought to maintain policies of the
previous administration, including pricing policy, which
generally won market plaudits.
    Brazilian petrochemical producer Braskem rallied
4.7% on speculation of a potential sale of the company.

    
    Key Latin American stock indexes and currencies:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1349.04     0.03
                                   
 MSCI LatAm               2410.11     0.21
                                   
 Brazil Bovespa         120863.38    -0.21
                                   
 Mexico IPC              48152.41    -1.18
                                   
 Chile IPSA               4985.67    -0.05
                                   
 Argentina MerVal        47955.24     0.61
                                   
 Colombia COLCAP          1311.36    -0.43
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.5554     0.53
                                   
 Mexico peso              19.8387     0.38
                                   
 Chile peso                 699.4     0.64
                                   
 Colombia peso               3625    -0.64
                                   
 Peru sol                  3.6718    -1.06
                                   
 Argentina peso           92.9200    -0.12
 (interbank)                       
                                   
 

 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru;
editing by Jonathan Oatis and Alistair Bell)
  

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After the initial capital, Infarm Germany hired Goldman to root out the source of the blank checks | Instant News


FRANKFURT, April 16 (Reuters) – German vertical farming start-up Infarm has hired Goldman Sachs to help talk about the possibility of going public through a merger with a so-called blank check firm as it seeks funds for expansion, people close to it. the problem said.

Berlin-based Infarm, which currently focuses on the production of indoor herbs and salad vegetables, uses cloud computing to manage the cultivation of products grown near consumers, minimizing its environmental impact.

The company has hired Goldman to help engage in talks with a special-purpose acquisition (SPAC) company about a potential merger that could grant unicorn status, meaning a valuation of more than $ 1 billion, the people said.

The individuals, who requested anonymity because the talks were private, said that Infarm may not agree to a merger with SPAC.

Infarm said it comments on rumors or market speculation. Goldman Sachs declined to comment.

SPAC raises funds in an initial public offering (IPO) with the aim of buying a private company, which then automatically gets a stock market listing.

Infarm last month raised $ 100 million, bringing total funding so far to $ 400 million. Supporters include LGT Lightstone, Hanaco, Bonnier, Haniel, Latitude, Atomico, TriplePoint Capital, Mons Capital, and Good Harvest.

It has reached supply deals with major food retailers including Aldi Germany, Marks and Spencer in the UK and Kroger in the United States.

Infarm said last year that it plans to expand its cultivated area to 5 million square feet (465,000 square meters) by 2025, up from the 500,000 square feet now running in 10 countries, and add mushrooms, tomatoes and strawberries to its salads and herbs. now he sells.

Its automated 25-square-meter modular planting center can produce crops that typically require up to 10,000 square meters of land-based agricultural land, uses 95% less water, 90% less transportation and zero chemical pesticides, Infarm said. ($ 1 = 0.8347 euros) (Additional reporting by Nadine Schimroszik; Editing by Alexander Smith)

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