Minister: Brazil's economy will overtake France

SAO PAULO (AP) — Latin America's biggest economy will overtake France's to become the globe's fifth-largest before 2015, Brazil's finance minister said Tuesday.

Latin American IPOs face a difficult 2012

San Francisco (MarketWatch) — Latin America’s market for initial public offerings faces a difficult year in 2012, mostly due to sluggish economic growth across the region.

Analysis: Mexico 2012 frontrunner stirs reform optimism

(Reuters) - Investors frustrated with years of gridlock on economic reforms in Mexico now believe the best chance for progress lies with the party that has done most to prevent change over the last decade.

Brazil economy overtakes UK, says CEBR

Brazil has overtaken the UK as the world's sixth largest economy, an economic research group has said.

Cuba wraps up dramatic year of economic change

HAVANA (AP) — A year at the vanguard of Cuba's economic revival has not brought Julio Cesar Hidalgo riches. The fledgling pizzeria owner has had his good months, but the restaurant he opened with his girlfriend often runs at a loss. At times, they can't afford to buy basic ingredients.

Pinera Says Chile Will Be First Developed Country in Latin America by 2020

Chilean President Sebastian Pinera, who earned his fortune by setting up Chile’s first credit card network and revitalizing Lan Airlines SA, aims to vault his country into the ranks of developed nations by 2020. He talked to Bloomberg Markets magazine editor Ronald Henkoff and Bloomberg News Santiago bureau chief James Attwood on Dec. 6.

Cuban banks begin offering loans to private businesses

Banks in Cuba have begun offering loans to individual citizens, in the latest free-market reform in the communist-run island.

Fitch: Latin America Sovereign Creditworthiness Trends Stable in 2012

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has published its Latin America Sovereign Outlook for 2012, noting that sovereign creditworthiness trends in Latin America are expected to remain broadly stable in 2012 (only the Dominican Republic is currently on Positive Outlook) following the positive credit cycle of the last 12-18 months.

Brazil stocks fall on inflation, euro-zone views

LOS ANGELES (MarketWatch) — Brazilian and Mexican stocks fell Monday, turning lower following a downbeat assessment about the euro-area’s economy and the outlook on taming the debt crisis from the head of the region’s central bank.

Brazil’s economy slows

Brazil still might be the darling of foreign investors and Miami real-estate agents but as the year draws to a close, its once booming economy is slowing.

Latin America's biggest airline LATAM is approved

The merger of two major Latin American airlines has been approved, creating the largest carrier in the region.

Brazil Housing Market Booming 'Til 2017

Investors worried about an overheated Chinese housing market need only turn to Brazil. This real estate market has legs. And the recent five year real estate boom there has a good five more years before home values stop appreciating.

Latin America better-prepared for any economic storms

Not only has the region learned lessons from the 2008 crisis, but many countries have built up their international reserves and continued economic reforms.

Bradesco Said to Be Close to Buying HSBC’s Losango in Brazil

Banco Bradesco SA (BBDC4) is close to buying HSBC Holdings Plc (HSBA)’s Brazil consumer-finance unit, Losango, for about 750 million reais ($415 million), according to two people familiar with the deal.

U.S. should embrace Latin America

(CNN) -- The United States is looking for new ways to regain its strength, to shake off the recession blues and fortify its position of international leadership. But Washington is missing the obvious, neglecting its closest neighbors. Big mistake.

Lima Plans First Overseas Debt Sale With $500 Million Issue, Mayor Says

Lima, Peru’s capital city, plans to sell debt in international markets for the first time by issuing $500 million worth of bonds denominated in soles over the next two years, Mayor Susana Villaran said.

Brazil's economic growth stalls in third quarter

Brazil saw its economic growth stall for the three months to the end of September, official figures show.

Itau Takes Top Brazil Bank Ranks From Citigroup, Rothschild

Banco Itau BBA SA has taken over the top rankings in Brazil for merger advice, equity underwriting and initial public offerings, supplanting foreign banks Citigroup Inc. (C), Rothschild and Credit Suisse Group AG. (CSGN).

How Guyana gold mining threatens its green future

Almost everyone in Port Kaituma is making money from gold. From the miners who head out to the camps in the surrounding jungle to the owners of the bars and stores where the miners spend their money.

Latin America Forms Bloc Excluding U.S., Canada

Dec. 3 (Bloomberg) -- Latin American and Caribbean countries signed the “declaration of Caracas” today in Venezuela to formalize the creation of the Community of Latin American and Caribbean States, an economic and political bloc that excludes the U.S. and Canada.

Argentina Capital Flight Accelerated to $8.4 Billion in the Third Quarter

Argentine capital flight accelerated to the fastest pace in at least four years last quarter as investors concerned about inflation and a weakening peso pulled cash out of South America’s second-biggest economy.

Brazil's Booming Economy Is Creating 19 'Millionaires' Every Day

Brazil has been adding 19 ‘millionaires’ per day since 2007 — and that statistic will likely be repeated over the next three years as Latin America’s economic super-power continues to deliver stellar GDP growth and consumption rates, according to bankers.

Gold, Inflation And Lessons From Latin America

As shoppers in the U.S. celebrate the official start of the holiday shopping season with Black Friday and seek out the bargain basement prices, our own central bank is seeking to lift prices and deter deflation.

Techint Buys $2.7 Billion Stake in Usiminas to Tap Brazilian Steel Market

The Techint Group agreed to pay 5.03 billion reais ($2.7 billion) for a 27.7 percent voting stake in Brazil’s Usinas Siderurgicas de Minas Gerais SA (USIM3) to boost access to the largest market for steel in Latin America.

For United Continental, Latin America represents a growing market

For United Continental, the Latin American market — an area that stretches from Brazil’s growing economy in South America to Mexico’s precarious Saltillo region — is sizzling with new business.

Venezuela receives first gold shipment from Europe

CARACAS, Venezuela — A shipment of gold has been deposited in Venezuela's central bank in Caracas after President Hugo Chavez ordered the repatriation of most of the country's bullion reserves from overseas banks.

IMF Lagarde: Latin America Not Immune To Crisis, Should Prepare

MEXICO CITY -(Dow Jones)- Latin America isn't immune to the European debt crisis and should prepare to confront possible turbulence, keeping prudent fiscal policies, International Monetary Fund Managing Director Christine Lagarde said in an article published Friday, just days ahead of starting a tour to the region.

Venezuela businesses brace for more price controls

CARACAS, Venezuela — New rules aimed at curbing Venezuela's high inflation by broadening government price controls will scare off investors and hurt consumers, the president of ountry's largest business chamber predicted Monday.

Brazil to Miss Inflation Target Until 2015, Weekly Economist Survey Shows

Economists covering Brazil raised their forecast for 2014 inflation above the 4.5 percent target for the first time, on doubts about the central bank’s commitment to controlling consumer prices.

Mexico, Cuba, Brazil: Why Latin America matters for U.S. national security

Washington (CNN) -- It used to be said that if the American economy sneezed, Latin America and the Caribbean would catch a cold.

Latin America offers refuge from financial crisis

With their lower unemployment, increasing consumption and higher growth rates, Latin American nations are attracting investors looking for a refuge from the global financial turmoil, analysts say.At the same time, they cautioned at a three-day conference that wrapped up Friday in Madrid, the region is not an "immune oasis" from the troubles affecting the world economy.

French co. to build solar farm in Puerto Rico

SAN JUAN, Puerto Rico — A French company says it will invest $115 million to build a 44-megawatt solar farm in Puerto Rico.

Venezuela Forces Sale of Rental Properties

CARACAS—Venezuelan President Hugo Chávez signed a new rental law into effect over the weekend that obliges landlords to sell their property to tenants of more than 20 years at state-mandated discounts based on how long the space has been rented.

Q/A: New VC Fund Banks on Mexico’s IT Startups November 14th, 2011

Mexico’s IT startup community may soon be getting another injection of much needed venture capital from a California-based seed fund called MexicanVC.

Latin America better prepared to weather a slowdown in global economy

Despite global volatility and the possibility of an economic slowdown in China, many still say they’re bullish on the region and its opportunities.

Telefonica Has Loss on Spain Slide, Latin America Slowdown

Telefonica SA, Europe’s largest phone company by market value, reported its first quarterly loss in nine years on costs to eliminate jobs and lower revenue from Spain as customers switched to cheaper rivals’ offers.

Brazil could establish renewable energy company

Brazil may establish its own state-owned renewable energy company focusing on solar power and ethanol.

Brazil IT Remains in a Class By Itself: Is That a Good Thing?

Brazil’s ascendancy as a major center for global IT services will be engineered in a uniquely Brazilian way, and should in no way aim to reproduce the model crafted by India over the last twenty years, concluded a ‘super panel’ of global outsourcing experts at last week’s Brasscom Global IT Forum in Sao Paulo.

JPMorgan Says Sell Defaulted Vitro Debt on Overvalued Offer: Mexico Credit

Vitro SAB’s defaulted bonds are rallying to a two-month high, a sign to JPMorgan Chase & Co. and BCP Securities LLC to sell the securities because the price overvalues the Mexican glassmaker’s latest debt-restructuring offer by almost 50 percent.

Slaying plunges Colombia rebels into uncertainty

President Juan Manuel Santos on Saturday called on fighters of Latin America's only major rebel force to accept the killing of their top leader as proof the movement is doomed and to surrender.

Former Argentinian minister says Irish do not realise scale of problems

IRISH PEOPLE still have not grasped the gravity of the economic crisis that has gripped the euro zone and do not appreciate how bad things could get, according to a former economics minister in the Argentinian government.

Why Nicaragua is ready to re-elect Daniel Ortega

For some 30 years, Daniel Ortega and his erstwhile Sandinista revolutionaries have been loathed by Nicaragua's traditional economic elite.

El Salvador counts cost as crops destroyed by floods

The United Nations has launched an emergency appeal to help an estimated 300,000 people in El Salvador after heavy rains caused widespread flooding across Central America. The immediate concerns are to provide shelter, food and health care, but tackling the long-term effects will be difficult and costly.

Currency Risk in South America – Brazil and Argentina

Inflation is beginning to rear its head globally.

Brazil: A Stalled Economy in the Land of Samba & Soccer

Brazil’s economy is expected to slow to about 3% for the remainder of 2011, which is right near the 2.5% number released for Q3 GDP for the United States.

This unspectacular 3% number is even after 100 billion dollars of foreign investment and two recent interest rate cuts. There has been much hype and much investment after it was announced that the World Cup & Olympics would be hosted in this South American country.

However, high inflation as a result of higher commodities and wages will have a negative impact on Brazil’s economy going forward.



The Good: 2014 World Cup & 2016 Olympics

Brazil has a lot to be proud of hosting the World Cup & Olympics two years apart. I have traveled to Brazil over a dozen times and it is wonderful country.

From Oro Preto to Recifi, Brazil has been blessed with spectacular natural beauty. The county is rich in culture, from both the New World & the Old World. Case in point:

A visit to the Lapa neighborhood in Rio De Janeiro on a Friday night will expose the visitor to music with roots from Africa, which in turn has influenced a wide-range of Brazilian music. Brazil is also considered the zenith of soccer, and 5 World Cup’s substantiate this claim.

From Antonio Carlos Jobim to Pele, Brazil has given the world much in the area of art and sport. From an economic point of view it is now considered the largest and most stable country in South America.

                                                                                              Examiner

Brazil Bull Market Luring Bears as Short-Sale Gauge Doubles ’08 Peak Level

Stock investors are showing little faith in Brazil’s bull market.

Global economic difficulties could ripple to Latin America

Speakers at Friday’s Latin Trade Symposium were optimistic about the region’s prospects but said the difficult global economy could cloud the outlook

Steak Price Jump Sparking Demand for Inflation Protection: Mexico Credit

Rising beef prices and a slumping peso are prompting bond investors to boost their inflation forecasts for Mexico by the most in four months.

Bovespa Index Approaches Bull Market as Valuations, Rates Spur Rebound

Brazilian stocks approached a bull market as the cheapest valuations in more than two years and declining interest rates helped spark a rebound from the worst equity slump since the 2008-2009 financial crisis.

Brazil's sports minister leaving

 Brazilian media reported Wednesday that the nation's sports minister will be replaced soon because of corruption allegations.

Tough term ahead for Argentina's Cristina Fernandez

Argentina does not often experience such a one-sided election.

Under pressure, Bolivian president scraps highway plan

(CNN) -- Bowing to months of pressure and demonstrations from indigenous communities, Bolivian President Evo Morales has scrapped a plan for the construction of an international highway through a national park that is their ancestral homeland.

Bolivia's Evo Morales scraps Amazon road project

Bolivia's President Evo Morales has scrapped plans for a road project in the Amazon that had triggered protests by indigenous people.

Mr Morales said the road would no longer go through a rainforest reserve. 


He made the announcement two days after protesters arrived in La Paz following a two-month march from the Amazon lowlands to voice their opposition.
It is not yet clear what the demonstrators' response will be.

The president said he would send a measure to Congress that would accommodate the protesters' demands.
"The matter is resolved," Mr Morales said.

An indigenous leader, Rafael Quispe, said the president's proposal was a "good sign" but said they had 15 other demands that needed to be discussed, the Spanish news agency Efe reported.

President Morales had been under fire ever since he announced his government's plan to build the road, no matter what, says the BBC's Mattia Cabitza in La Paz.

This is the second time in less than a year that Mr Morales has backtracked under popular pressure, our correspondent adds.

The last time, just after Christmas, was dubbed the "Gasolinazo", when he tried to almost double petrol prices but was forced to drop the plan. Then, like today, he said he was "governing by obeying the people".
Development - or disaster?
 
Thousands of residents were on the streets of La Paz this week as some 1,000 protesters arrived to call for the project to be stopped.

The government had argued that the road would boost economic development and regional integration.
The protesters said the project - funded by Brazil and built by a Brazilian company - would encourage illegal settlement and deforestation in their rainforest homeland.

The plans were for a highway through the Isiboro Secure Indigenous Territory and National Park - known by its Spanish acronym Tipnis.

President Morales, Bolivia's first indigenous president, had already suspended the project and offered talks with the protesters.

However, there were also demonstrations in support of the road project from indigenous groups that are loyal to the president.

Source: www.bbc.co.uk

Fla businesses see bright future with free trade

Florida businesses are celebrating the approval of the free-trade agreements with Colombia, Panama and South Korea, hoping they boost both the state's exports and its image as the gateway to Latin American business opportunities.

The agreements approved last week will eliminate tariffs on U.S. products, help protect intellectual property and improve access for American investors in those countries. Experts say they could boost the nation's exports by $13 billion and the Obama administration says it will add at least 70,000 new jobs for Americans. Working out the final details with the other countries could still take several months.

US says strong economic relationship with region a 'strategic necessity'

WASHINGTON, USA  — A top United States official says that strong economic relationships with the Caribbean and Latin America are "a strategic necessity".

Deputy Secretary for Management and Resources at the State Department Thomas Nides told the Chamber of Commerce that "sustainable, inclusive economic growth in Latin America and the Caribbean will benefit all of us".

Brazil Retreat From Inflation-Taming Plan Makes Investors Hedge

Oct. 19 (Bloomberg) -- Brazilian officials are turning away from a 15-year old formula for success as worldwide financial storms erode faith in three core policies that ended decades of economic crisis, according to former policy makers and analysts who lived through the turmoil.

The so-called tripod of inflation targeting, low budget deficits and a floating exchange rate has supported the longest period of growth in Latin America’s biggest economy since the 1970s, helping to lift millions out of poverty and winning Brazil its first-ever investment grade rating.

Global Insider: China-Mexico Trade Relations

Mexico's economy minister sent China a formal letter last month expressing concern over unfair trade practices used by certain Chinese firms to avoid customs duties. In an email interview, Rhys Jenkins, a specialist in China's trade relations with Latin America at the University of East Anglia, discussed the trade relationship between China and Mexico.


WPR: What is the history of China-Mexico trade ties?

Rhys Jenkins: Trade between Mexico and China has grown spectacularly over the past decade from a little more than $3 billion in 2000 to almost $50 billion in 2010. The trade balance, however, has been massively in favor of China, with the value of Mexican imports running at 10 times that of exports to China, according to Mexican figures. China reports a much smaller trade surplus with Mexico, and the picture is confused by "triangulation," where goods pass through third countries, particularly the U.S. There is no doubt, though, that Mexico does register a large trade deficit with China since it has not developed significant exports to China, unlike some of the major South American countries.

WPR: What is the source of the current trade dispute between Mexico and China?

Jenkins: Trade conflicts between Mexico and China go back at least a decade. When China applied to join the World Trade Organization (WTO), Mexico was the last country to give its approval, in 2001. Mexican concerns were twofold: first, that the guaranteed access to the U.S. market that the WTO would give China would have a negative effect on Mexican exports to the north and, second, that Chinese imports would flood the Mexican domestic market. There was little that the Mexican government could do to prevent China's access to the U.S. market, and in 2003 Chinese exports to the U.S. exceeded those of Mexico for the first time. In order to reduce the impact of Chinese competition on the domestic market, Mexico insisted on arrangements that enabled it to maintain tariffs of between 100 percent and 1,100 percent on a range of Chinese imports for seven years as a condition for agreeing to China's WTO accession. When these arrangements were due to expire in 2008, the two countries agreed on a transition period that gave Mexican producers a further three years to adjust before restrictions are finally removed. These are due to end in December of this year.

The Mexican government has serious concerns over the large and growing bilateral trade deficit with China. Mexican manufacturers in a range of industries have long complained of unfair competition from Chinese imports. They claim that Chinese goods enter the market as contraband and that they avoid paying the appropriate import duties by underinvoicing or misclassifying goods, or by shipping them through third countries. China has been the main target for anti-dumping actions taken by Mexico at the WTO, accounting for 29 out of a total of 99 cases initiated since 1995.

WPR: What are the regional implications of Mexico's tough trade stance toward China?

Jenkins: Although other large Latin American countries such as Brazil and Argentina do not have such acute economic tensions with China, since their booming commodity exports have meant that they have not experienced large trade deficits, increased penetration of Chinese goods have nonetheless led to similar calls for protection from industrialists. China has been a principal target for anti-dumping actions in these countries too.

Source: www.worldpoliticsreview.com

Geo Plunge Leads Worst Corporate Slump Since ‘06: Mexico Credit

Oct. 18 (Bloomberg) -- Mexican corporate bonds are posting their longest losing streak in five years as the slowdown in the U.S., the Latin American country’s biggest trade partner, erodes demand for debt sold by companies from Corp. Geo SAB to Financiera Independencia SAB.

The 2.1 percent loss in Mexican corporate dollar debt over the past 30 days is the third straight month of declines, the most since the period ended June 17, 2006, according to JPMorgan Chase & Co. Brazilian companies’ bonds slumped 1.3 percent in the past month, the second consecutive month of losses. Emerging-market corporate debt also fell for a second month, losing 1.9 percent over the past 30 days.

Move Over, China: Why India May Be the Better Partner for Latin America

Bolivia this month is accusing India's Jindal Steel & Power Ltd. of failing to honor its $2.1 billion investment commitment to develop the Mutún iron ore mine and smelting works. Jindal in turn claims Bolivia isn't providing it sufficient gas and electrical power to get the job done. Such disputes between Latin American governments and foreign multinationals, especially in the mining sector, are hardly new. But what's different today is that the tussles as well as the triumphs increasingly involve India – the emerging Asian power whose economic clout in Latin America could soon rival China's.

Industry group lowers Brazil's 2011 growth forecast to 3.4%

BRASILIA, Oct. 11 (Xinhua) -- The Brazilian National Industry Confederation (CNI) on Tuesday revised down its forecast for Brazil's economic growth this year to 3.4 percent from 3.8 percent due to the effects of the world economic crisis.

According to the CNI, Brazil's industry sector will also suffer from the ongoing debt crisis in the United States and Europe.

Brazil inflation hits 6-yr high but rate cut seen

Inflation in Brazil climbed further out of the central bank's comfort zone in September but higher prices are not likely to prevent mor rate cuts for Latin America's biggest economy or the rest of the region.

Brazilian inflation hit an annual rate of 7.31 percent in September, more than double the rates recorded in Mexico and Chile and the highest since May 2005, data showed on Friday.

US Tells Latin America to Help Poor Get Richer Too

Poised to expand its free-trade network in Latin America, the United States on Wednesday pressed governments of the region to ensure that all of their citizens benefit from the increased prosperity that expanded commerce offers. The Obama administration offered $17.5 million in American assistance toward that goal.

Speaking at a regional economic conference in the Dominican Republic, Secretary of State Hillary Rodham Clinton said she expected Congress to approve a set of new trade pacts with South Korea, Colombia and Panama quickly, alongside a program that would help American workers and businesses adjust to the stresses that globalization create.

Brazilian economy set for a slowdown

Brazil’s economy is set for a slowdown, with industrial production contracting in August as domestic manufacturers struggle with rising interest rates, a strong currency and a weakening global economy.
Goldman Sachs said it has revised its forecast for Brazil gross domestic product growth to 3.5 per cent this year from 3.7 per cent, which would be less than half that of 2010, when Latin America’s largest economy expanded at an Asia-like rate of 7.5 per cent.

Default Concern Drives Maxcom Yields to Record: Mexico Credit

Oct. 3 (Bloomberg) -- Maxcom Telecomunicaciones SAB’s borrowing costs are rising at twice the pace of similarly rated global peers on speculation the Mexican phone company may default as slowing economic growth deepens losses.

Yields on Maxcom’s dollar bonds due in 2014 soared 1,004 basis points in the past two months to a record 28.26 percent, while the price of the securities sank to 65.09 cents on the dollar, according to data compiled by Bloomberg. The average yield on debt sold by companies globally that share Maxcom’s CCC rating climbed 446 basis points, or 4.46 percentage points, during the same period to 15.42 percent, Bank of America Corp. data show.

US Diplomats Tout Latin American Economies

Two United States ambassadors to Latin American countries and the U.S. Deputy Chief of Mission to Brazil are on tour in a recession-torn U.S. touting the booming Latin American economies to U.S. businesses large and small.

The tour for the diplomatic party of three – U.S. Ambassador to Peru Rose M. Likins, U.S. Ambassador to Chile Alejandro Wolf and U.S. Deputy Mission Chief to Brazil Todd C. Chapman – began this week in Memphis with a luncheon hosted by FedEx Corp. and the Business Council for International Understanding.

Mexico economic activity rises briskly in July

MEXICO CITY, Sept 28 (Reuters) - Mexico's agriculture
sector expanded in July to drive economic activity surprisingly
higher while upticks in the services and industrial sector were
also bright spots for Latin America's second-largest economy.

Economic activity MXIGAE=ECI rose 0.88 percent in July
from the previous month, government statistics institute INEGI
said on Wednesday, more than double analysts' median forecast
in a Reuters poll for a rise of 0.33 percent.

Argentina: Latin America's Highest Growth

Argentina and Panama lead Latin American GDP growth this year, while El Salvador and Venezuela are the laggards.

Peso Bonds Slump in Split From Treasuries Amid Greek Crisis: Mexico Credit

Mexico’s bonds, the emerging-market securities most correlated with U.S. Treasuries, are no longer moving in lockstep with debt from its northern neighbor as Europe’s debt crisis curbs demand for all but the safest assets.

Yields on Mexico’s peso bonds due in 2021 rose 37 basis points in last week to 6.73 percent, the most since they were issued in February, while those on similar-maturity Treasuries sank 21, according to data compiled by Bloomberg. The 120-day correlation coefficient between Mexican bonds and Treasuries dropped to a nine-month low of 0.29 from a high of 0.57. A reading of 1 indicates the two always move in the same direction. Mexican securities now track Turkish bonds more closely than Treasuries.

Mexico posts $71 mln adjusted trade surplus in Aug

Mexico posted a small trade surplus in August as gains in petrol exports made up for a slide in factory exports that drive Latin America's second-largest economy.

The trade surplus was $71 million in August when adjusted for seasonal swings, down from a revised $276.5 million deficit in July, the national statistics agency said on Monday.

Latin American Economies Doing Well Inspite of Global Economic Problems Say Economic Ministers

Latin America and the Caribbean continue to weather relatively well the problems currently afflicting the global economy, Inter-American Development Bank President Luis Alberto Moreno said today at a meeting of central bankers and finance ministers.

Speaking to members of the Group of 30, Moreno said: “Indeed for many countries, the external environment has been relatively positive, and the region has made significant and fundamental advances. Still, the region is in a position to advance even further.”

Colombia housing market reflects region's growth

A decade ago, the country was mired in conflict with leftist rebels. Now people are investing in homes — a trend across much of Latin America.

Reporting from Pereira, Colombia—
The 50-year-old teacher is about to do something she's never done, something remarkable in Colombia: Buy a home.

Inez Angel has her eye on a $35,000 split-level condo in the Villa Verde subdivision in the western Colombian city of Pereira. It is priced right, and the 15-year mortgage at a fixed 7% interest rate is affordable.

Mexican Peso ‘Clearly Undervalued,’ Central Bank Head Says

Mexico’s peso is undervalued after tumbling 11 percent against the dollar in the past month, central bank Governor Agustin Carstens said.

The peso rallied today after tumbling for 11 consecutive days on concern slower economic growth will undermine commodity prices. The Mexican currency appreciated 3.8 percent to 13.5630 to the dollar as of 4:58 p.m. New York time.

Latin America Resilient, But Risks Are Growing

Economic growth in Latin America and the Caribbean, expected to moderate to 4½ percent in 2011, is still strong but the uncertain global recovery could cause growth rates in the region to fall further, said Nicolás Eyzaguirre, Director of the IMF’s Western Hemisphere Department.

“Fears of a global slowdown and waning confidence have started to weigh on the region’s financial markets. Equities and more recently currencies are taking a hard hit,” Eyzaguirre said September 23 at a press briefing during the IMF-World Bank Annual Meetings.

Argentine economic plan: Raise spending, salaries

While the U.S. and Europe struggle to revive their economies by imposing austerity measures, South American leaders have generally done the opposite, spending their way to growth and the voters' acclaim.

Few have gone farther afield from the economic doctrines of Washington and Brussels than Argentina's President Cristina Fernandez, who proudly says that her government is doing more than any other in Latin America to improve the buying power of her citizens.

Mexico Needs No Stimulus to Withstand U.S. Slowdown, Meade Says

Sept. 21 (Bloomberg) -- Mexican Finance Minister Jose Antonio Meade ruled out boosting spending to fight off a U.S. slowdown that the International Monetary Fund says will hurt Latin America’s second-biggest economy more than its neighbors.

Meade, in an interview, said he’s sticking by a 4 percent growth forecast for this year even after the IMF yesterday slashed estimates for Mexico’s economic performance this year and in 2012. Mexico is committed to spending restraint, a policy that served it well during the global financial crisis when other countries saw inflation accelerate and debt loads rise as a result of excessive fiscal stimulus, he said.

China says its trade ties with Latin America boosts economic growth

BEIJING, Sept. 21 (Xinhua) -- China on Wednesday said its economic relations with Latin America boosted the region's economic and social development.

"China and Latin America have innovated ways of cooperation, realized rapid development of trade cooperation and robustly boosted their respective economic growth," Foreign Ministry spokesperson Hong Lei said at a regular press briefing on Wednesday.

Real Sinks to 16-Month Low, Extends Month’s Drop to 15 Percent

Sept. 21 (Bloomberg) -- Brazil’s real tumbled, bringing its decline this month to 15 percent as the worst performer in Latin America, on growing concern the central bank is mismanaging interest-rate policy at a time when global economic conditions are deteriorating.

The real extended losses after Federal Reserve policy makers said there are “significant downside risks to the economic outlook.” The currency slumped as much as 5.8 percent to a 16-month low of 1.8960 per dollar and ended trading down 4.8 percent at 1.8756 as of 5 p.m. in New York.

IMF Cuts Latin America 2011 GDP Forecast on Slowing Demand

The International Monetary Fund cut its 2011 economic growth forecast for Latin America as domestic demand slows on tighter macroeconomic policies and weaker global growth.

Driven by commodity producers, Latin America and Caribbean economies should expand 4.5 percent this year, below the forecast of 4.6 percent made in the IMF’s World Economic Outlook Update in July, the fund said in a report today. Argentina and Chile will lead the region, growing 8 percent and 6.5 percent respectively, while the region’s biggest and second-biggest economies -- Brazil and Mexico -- will both climb 3.8 percent.

South bears the brunt of America's rising poverty rate

Poverty rate rose faster in the South than anywhere else. Behind the raise in poverty rate: inmigration of minorities and reliance on jobs in industries hit hard by the recession.

Poverty rose everywhere in the United States in 2010, but the region to see the biggest increase was the South.

Macquarie Said to Close Latin America Fixed-Income Group

Sept. 13 (Bloomberg) -- Macquarie Group Ltd., Australia's largest investment bank, closed its Miami office and shut down its Latin America fixed-income business, according to a person familiar with the matter.

John Welch, chief emerging-market strategist for the bank, was among those fired in the move, said the person, who asked not to be identified because the information hasn't been made public. Paula Chirhart, a spokeswoman in New York for Sydney- based Macquarie, declined to comment.

China Media Amps Up Latin America Coverage

A new forecast by the International Monetary Fund predicting slower economic growth is providing some tough love for the global recovery. But a new highway linking Peru's Pacific ports with the Amazon and China's strategic investments in Brazil, Argentina and Colombia could provide a silver lining for Latin America's economic future.

China's version of dollar diplomacy is helping to insulate Latin economies from the crisis. But it's also creating disputes over dumping, energy policy and technology that are similar to those that exist between Latin nations and the United States.

Brazil July Retail Sales Underscore Strong Demand

RIO DE JANEIRO (Dow Jones)--Brazilians continued their spending spree in July, shrugging off higher interest rates and stiffer credit terms to keep domestic demand in Latin America's largest economy heated.

Retail sales in July climbed a seasonally adjusted 1.4% from June, the Brazilian Institute of Geography and Statistics, or IBGE, said Tuesday. July sales were also up 7.1% from July 2010, and have advanced 8.5% over the past 12 months. The advance was greater than the median forecast of analysts polled by the Estado news agency, which projected a sales gain of 1.03% in July versus June. The forecasts fell within a range between growth of 0.3% and 1.6%.

Iranian vice president due in Latin America

TEHRAN (ISNA) – Iranian Vice President Mohammad Reza Rahimi departed for Havana Tuesday morning to take part in Iran-Cuba 15th joint commission meeting on commerce and meet with Cuban officials.

After his visit to Cuba, Rahimi is supposed to travel to Ecuador and meet with the officials.

“Iran’s relation with Latin American countries has broadened in recent years,” said Iranian vice president before his departure to Cuba.

Latin America’s blind love with China may be over

After a decade of record Latin American exports to China, which helped the region grow significantly despite the recent global recession, there are signs that the honeymoon may be coming to an end.

Growing numbers or Latin American business leaders and trade experts are complaining that China is buying almost exclusively raw materials from the region, while refusing to purchase more sophisticated — and expensive — Latin American goods, thus preventing the region from having more diversified economies.

October Rate Cut Prediction Shows U.S. Slump Spilling Over: Mexico Credit

Mexico will follow Brazil and Turkey in cutting interest rates next month to help shield the economy from a slowdown in the U.S., swaps trading shows.

Yields on futures contracts for October, known as TIIE, sank 11 basis points in the past month to 4.73 percent, indicating traders expect central bank Governor Agustin Carstens to lower the benchmark 4.5 percent rate when the board meets Oct. 14. Those wagers signal a reversal for traders who expected as recently as Aug. 25 that Carstens’s next move would be to raise borrowing costs from a record low.

Brazil 2011 inflation forecast tweaked higher

SAO PAULO, Sept 5 (Reuters) - Economists raised their forecast for Brazil's benchmark inflation index this year to 6.38 percent from 6.31 percent previously, according to a weekly central bank survey published on Monday.

Economists forecast growth of 3.67 percent in Latin America's biggest economy this year, down from a 3.79 percent forecast in the previous survey.

Brazil Industry Suffers As Strong Real Stokes Imports

RIO DE JANEIRO -(Dow Jones)- Output at Brazil's mines and factories continued to slow in July as growth in Latin America's largest economy buckles under the weight of towering interest rates and a strong currency that has fueled a flood of cheap imports.

July's 0.5% growth in industrial production, which followed a 1.2% slide in June, was affected by "the greater presence of imported products and lower demand in the domestic market," said Andre Luiz Macedo, coordinator of the industrial output survey at the Brazilian Institute for Geography and Statistics, or IBGE. Higher interest rates and other measures aimed at reining in credit and tamping down domestic demand are being reflected in industrial production, Macedo said.

Brazil to end rate rises as slowdown mounts

RIO DE JANEIRO, Aug 31 (Reuters) - Brazil's central bank will likely call a halt to this year's flurry of interest rate hikes on Wednesday as it responds to growing signs of a slowdown in Latin America's largest economy.

With annual inflation running above 7 percent, policymakers will be reluctant to start reducing the country's lofty borrowing costs just yet and are expected by economists to leave the benchmark Selic rate at 12.5 percent.

Vivendi profits boosted by games and Brazilian business

Vivendi, Europe's biggest telecom and entertainment group, has reported results boosted by its games business and its Brazilian unit.

The company's net profit came in at 3.31bn euros ($4.78bn; £2.93bn) for the first six months of the year, which was 58.8% up on the same period last year.

Mining companies agree to pay Peru an extra billion dollars annually

Peru has reached an agreement with mining companies that will raise the industry’s annual payments to the government to about one billion dollars, the government said on Thursday, fulfilling a campaign promise by President Ollanta Humala.

Humala took office in late July, vowing to tax mining companies' windfall profits to bolster social programs in a country where one of every three people is poor. Mining accounts for 60% of Peru's export revenue.

Brazil loosing industry to Mercosur members with cheaper costs and lower taxes

The strong growth of the Brazilian economy, almost to full capacity, and the Super Real have Argentina, Paraguay and Uruguay increasingly attracting Brazilian companies while factories and jobs are lost to Mercosur members, complain industry leaders.

“Business missions sent by the governments of Uruguay, Paraguay and other Latin American countries are frequently visiting Brazil and meeting with associations from the different industrial sectors with the purpose of attracting them to invest in their countries. The bait is not the potential of local markets but more competitive costs than in Brazil”, said Raquel Landim in a piece for O Estado de Sao Paulo.

Latin American central banks ready to reverse policy and cut interest rates

Brazil and Chile have anticipated such a possibility and Mexico on Friday stunned markets by opening the door to rate cuts.

The region’s policymakers were among the most aggressive in tightening policy after the global financial crisis. They may now be among the first to start easing, following in the footsteps of Denmark, Turkey and Switzerland.

Commerce secretary Rahul Khullar heads to LatAm in Panama and Colombia for FTA talks

NEW DELHI: After shunning Latin America two years ago, the government is now seeking closer economic ties with the region as part of its initiative to diversify markets for Indian merchandise.

Commerce secretary Rahul Khullar will be visiting Latin America this week to explore avenues of improving economic cooperation with the countries of the region. Khullar, who will be leading a high-level business delegation, will also look into the possibility of signing free trade agreements (FTAs) with Panama and Colombia, which could serve as a gateway to Latin America.

Latin American stocks up; Brazil adds 2%

SAN FRANCISCO (MarketWatch) — Latin American markets strengthened Monday as U.S. stocks got a boost from better-than-expected July consumer spending figures and an optimistic outlook on the U.S. economy from Federal Reserve Chairman Ben Bernanke last week.

In Brazil, home of the biggest stock exchange in Latin America, the Bovespa BR:BVSP +2.75% gained 2.2% to 54,507.86. It had climbed 0.8% on Friday.

The week in Latin America: Unrest continues in Chile

Here are stories that made headlines this week in Latin America, and highlights from our coverage of the region by Times reporters and your blogger here at La Plaza:

1 dead in Chile national strike

A two-day national strike in Chile led to hundreds of injuries, more than a thousand arrests and the death of a teenage boy after violent clashes between workers and students and Chilean police. The strike was the latest large-scale demonstration challenging the conservative government of President Sebastian Pinera, Chile's first non-leftist leader since the return to democracy.

U.K. Economic Expansion Slowed to 0.2% in Second Quarter

Aug. 26 (Bloomberg) -- U.K. economic growth slowed in the second quarter as manufacturing shrank, adding pressure on Prime Minister David Cameron to do more to boost the economy.

Gross domestic product rose 0.2 percent, the same as estimated a month ago, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 30 economists was for 0.2 percent growth. Output rose 0.7 percent from a year earlier.

LatAm, Asia leaders to boost cooperation

Leaders at a gathering of nations from Latin America and Asia, including Australia, has called for closer economic cooperation to help combat the global financial crisis.

Argentine Foreign Minister Hector Timerman kicked off Thursday's gathering by underlining 'the need for concrete actions to strengthen biregional political and economic ties'.

Making the desert bloom

The Mexican economy has recovered somewhat from a scorching recession imported from America, but is still hobbled by domestic monopolies and cartels.

HOT and high in the Sierra Madre, the city of Saltillo is a long way from Wall Street. Stuffed goats keep an eye on customers in the high-street vaquera, or cowboy outfitter, where workers from the local car factories blow their pesos on snakeskin boots and $100 Stetsons. Pinstriped suits and silk ties are outnumbered by checked shirts and silver belt-buckles; pickups are prized over Porsches.

New Report Touts Latin American Commercial Property Markets

A new report published by CB Richard Ellis (CBRE) has identified Latin America as a fast-emerging market for commercial real estate (CRE) investors and corporate occupiers.

According to "The Outlook for Latin America's Commercial Real Estate Markets," Latin America's CRE market conditions are mostly strong - Mexico is the main exception. Healthy consumer spending and commodity-driven economic growth is fueling the region's retail centers and housing markets and driving demand for office and industrial space, the report says, while net absorption of commercial space in Latin America is expected to enjoy the support of multinational firms and domestic sources.

Making the desert bloom

The Mexican economy has recovered somewhat from a scorching recession imported from America, but is still hobbled by domestic monopolies and cartels

HOT and high in the Sierra Madre, the city of Saltillo is a long way from Wall Street. Stuffed goats keep an eye on customers in the high-street vaquera, or cowboy outfitter, where workers from the local car factories blow their pesos on snakeskin boots and $100 Stetsons. Pinstriped suits and silk ties are outnumbered by checked shirts and silver belt-buckles; pickups are prized over Porsches.

LatAm currencies mixed before Bernanke speech

Aug 25 (Reuters) - Latin American currencies traded mixed against the U.S. dollar on Thursday, with the Mexican peso gaining and Brazil's real weakening, on the day before a planned address by the head of the U.S. central bank.

Ben Bernanke, chairman of the U.S. Federal Reserve, is scheduled to give an address to the Jackson Hole Economic Symposium on Friday at an annual gathering of world economists and central bankers in the Rocky Mountains.

Brazil real, Mexican peso slides; Chile's gains

RIO DE JANEIRO, Aug 24 (Reuters) - Latin American currencies weakened or trimmed gains against the U.S. dollar in late trading on Wednesday as investors judged the prospects for world economic growth to be weak.

The declines came as business confidence in Germany, Europe's largest economy, dropped to its lowest level in 14 months and after Moody's Investors Service cut Japan's debt rating to Aa3 from Aa2.

Growth and Opportunity in Commercial Real Estate Stronger in Latin America

Latin America has emerged as an important destination for both investors and corporate occupiers as commercial real estate conditions are strong in most of the region’s major markets, according to a new CB Richard Ellis Special Report, The Outlook for Latin America’s Commercial Real Estate Markets.

The report, prepared by Lopez-Beltran and Asieh Mansour, CBRE’s Head of Americas Research, analyzes economic and real estate conditions in Argentina, Brazil, Chile, Colombia, Costa Rica, Mexico and Panama.

Latin America: markets, leaders react to new economic crisis

Fears of a renewed global recession, coupled with concerns about public debt in Europe, forced down Latin American markets on Aug. 18. The most important market in the region, Brazil's BM&FBOVESPA (Bolsa de Valores, Mercadorias & Futuros de São Paulo), fell 3.52 % for the day, while in Argentina the MERVAL index plunged 4.11%. In Mexico City the Bolsa Mexicana de Valores (BMV) was down 2.36%; the IGBC index in Colombia fell by 3.15% and Chile's IPSA by 1.89%.

There were reports of "pessimism" among regional leaders. Latin American economies have generally performed better than the European and US economies after the financial crisis of 2008, but there is concern about the region's transnational companies, the "traslatinas." "These companies are the ones that depend the most on the global economy, because of the importance of exports," economist Alexandre Póvoa wrote in the Brazilian economic review Exame.

Latin American alliance confronts economic crisis

by: W. T. Whitney Jr.

The Union of South American Nations (UNASUR) has emerged from a bevy of regional alliances to assume a major role in work toward Latin American integration. With the Paraguayan Senate's approval August 13 of Paraguay's entry into UNSUR, the alliance now includes all 12 South American nations.

UNASUR has, since 2008, carried out independent, cooperative planning in a variety of areas, but none of them economic. Now, debt crises, worldwide economic slowdown, and a possible devaluation of the U.S. dollar have impelled them to action. What is needed, according to the Argentinean Communist Party newspaper Nuestra Propuesta, is "a common strategy to shield South America from contamination by the so-called 'central countries'...profoundly sick and fully decadent."

Brazil hosts a homecoming

By Joe Leahy


Cassio Calil recalls how he watched the recent rise of Brazil while working in the skyscrapers of New York.

After joining JPMorgan’s investment bank in 2005, having first left Brazil in 1987 for more promising climes, he noticed more and more representatives of ambitious Brazilian companies intent on international expansion turning up in his office. After decades of missed opportunities, Latin America’s largest economy was on the move.

“I was watching Brazil growing and growing from the camarote of New York,” says Mr Calil, referring to the private boxes used by spectators during Carnival. “I was participating [in that] by helping our Brazilian clients with solutions, but I was sitting in Park Avenue and watching Faria Lima grow,” he says.

He began to ponder a return to his native country and, today, he is one of those sitting in an office in Faria Lima – the avenue most popular with investment banks in São Paulo – after being appointed head of JPMorgan Asset Management in Brazil this year.

Mr Calil is among a growing number of Brazilians with international expertise and experience who are returning to Brazil. They are helping Latin America’s largest economy deal with a shortage of managerial talent as it becomes ever more entwined in the global economy, particularly after China overtook the US as its biggest trading partner in 2009.

Brazil’s distinctive culture, the lack of English spoken at street level and the country’s labyrinthine politics and bureaucracy make it hard to import foreign talent. Meanwhile, the global financial crisis is also prompting more Brazilian expatriates to consider going back, according to executive search consultants.

“We are seeing senior expatriates returning home because of the great opportunities here, and others who are also coming back because of the downturn in the US and Europe,” says Daniel Santiago Faria, country manager of Brazil for Marks Sattin, an executive search consultancy.

Popular sectors include banking and engineering. There are even specific schemes to attract and retain Brazilians with international experience. Citigroup, for example, has implemented programmes at US MBA colleges to recruit Brazilian graduates.

The shortage of managerial talent is reflected in soaring salaries. A study by Dasein Executive Search last December found that company bosses in São Paulo were the world’s highest paid, with a chief executive in Brazil’s financial capital earning an average of $620,000 excluding bonuses, compared with $574,000 in New York and $550,000 for top bosses in London. The trend has been accentuated by the strengthening of Brazil’s currency, the real against the dollar, but has primarily been driven by demand for talent.

Other recent returnees include Reinaldo Garcia, Latin America chief executive of General Electric, Sergio Leifert, chief operating officer of Société Générale, and Charles Ferraz, chief investment officer at Brazil’s largest private bank, Itaú.

“You read a lot about opportunities in Latin America, but when you’re there you actually feel it,” says Mr Garcia, who grew up in Ribeirão Preto amid the sugar cane fields of São Paulo state before leaving 31 years ago for the US. “It is one thing to go and visit [Brazil] and another to actually live there.”

For most long-term expatriates, the subsequent rise of Brazil was almost inconceivable when they left the country. Thirty years ago, Brazil was governed by a military dictatorship presiding over a crisis-prone economy. The Chinese economic miracle was still in the future and China would only emerge as the great engine for Brazil’s commodity export sector in the mid-2000s. The ascent of Brazil’s so-called “C classes” – the lower middle class fostered by social welfare reforms and increases in the minimum wage over the past decade – was also still years away.

When Mr Calil left the old Brazil as a young man 24 years ago, he was meant to be visiting Hong Kong for only three months as part of a traineeship with IBM. Following stints in Japan, Australia and Ireland, he ended up in New York and switched to JPMorgan in 2005. By then, some of Brazil’s own companies were emerging on the international stage, led by the likes of Anheuser-Busch InBev, the world’s largest brewer, JBS, the world’s biggest meat processing company, and state-owned giants Petrobras and Vale.

Mr Garcia quit law school in São Paulo in 1980 to study economics in North Carolina. “There was a military government, inflation was very high, prospects for the future were not very great and there was not a feeling that you could control your own future,” he says.



He joined GE straight out of college and went on to head its important healthcare division, a career path that involved moving to different positions in the US and Europe, including the UK.

“I didn’t think I would actually ever work in Brazil,” he says.

But in December last year, Jeffrey Immelt, GE’s chief executive, asked Mr Garcia to return to Brazil to lead the Latin American operation. The move was part of GE’s efforts to allocate more autonomy to fast-growing regional markets.

Asked whether he feels Brazilians with international experience such as himself are in danger of being press-ganged into returning home to fill the talent gap because they are familiar with the language and the culture, Mr Garcia says his nationality “helped” but it was not the deciding factor.

“It has got to be putting the right person in the right job,” says Mr Garcia. “Jeff asked me: ‘I’d like you to go but you can say no.’ I really felt that I could absolutely say no, but I also felt that this is definitely the right place to be right now so I don’t think it’s a matter of forcing. There is a natural magnetic attraction to these markets now.”

Like Mr Garcia, Mr Calil rejects suggestions that Brazilians with international experience are in danger of being pigeonholed. He points out that the connections he had with Brazil as part of his working life were as important as actually being Brazilian: “Had I been outside Brazil and not connecting to Brazil – even though being Brazilian – I would have been less effective.”

Both men note how life in São Paulo has changed. The city is a more attractive place to live, although security is worse than 30 years ago, says Mr Garcia. Both mention the national sport – soccer – as one thing that kept them “Brazilian” during the long years away. “If I was watching a soccer World Cup, who would I cheer for?“ says Mr Calil. “It has been Brazil from the day I left.”

Source: http://www.ft.com

Morgan Stanley Says Latin America May Slow With Global Recession

(Bloomberg) -- Growth in Latin America may see a "significant slowdown" if the U.S. and Europe return to recession, even though the region's economies are in a good enough financial shape to avoid a crisis, Morgan Stanley said.

"It may be too early to pronounce a global downturn, but there is little doubt that Latin America can't escape without seeing its growth path suffer," Morgan Stanley said in a report today.

Goldman Sachs GDP Cut Spurs Rate-Bet Delays: Mexico Credit

Mexican traders are postponing bets for interest-rate increases to August after Goldman Sachs Group Inc. and Bank of America Corp. lowered the country’s growth forecast amid concern the U.S. may relapse into recession.

Yields on futures for the 28-day interbank due in August, known as TIIE, sank 15 basis points in the past week to a record low 5.02 percent. The contracts indicate traders expect Banco de Mexico to leave its key rate unchanged at 4.5 percent until that month. They have delayed their estimates for a rate boost 14 times this year. In Brazil, traders are pricing in the possibility the central bank may lower borrowing costs by December after betting on an increase three weeks ago.

Latin America learns the price of growth

RIO DE JANEIRO — Latin America is starting to learn the ironic lesson of its stunning economic growth: with it comes rising currencies and inflation which threaten to reverse many of the gains made.

Brazil's real soared on Monday to the highest level against the dollar since 1999, when the South American giant delinked from the US currency.

Peru's Humala faces critical test to boost economy

LIMA, July 28 (Xinhua) -- Former military commander Ollanta Humala was inaugurated Thursday as Peru's new president amid concerns of whether he will stick to his election promises to enhance social inclusion through economic growth.

Analysts said Humala would have to move swiftly to start implementing profound social reforms and show Peruvians his resolution to fulfil election promises.

Colombian central bank statement on interest rates

Colombia on Friday raised its benchmark interest rate for the sixth straight time this year by 25 basis points in a widely expected move to prevent Latin America's fifth largest economy from overheating.

EMERGING MARKETS-Latam stocks rebound on U.S. economic data

SAO PAULO, July 28 (Reuters) - Latin American stocks rose
on Thursday on stronger--than-expected U.S. economic data,
helping pare steep losses in the previous session sparked by
concern over the U.S. debt ceiling deadlock.

Analysis: In debt row, hints of emerging-economy crises

Debt default. A ratings downgrade. Political deadlock. Such terms, once associated primarily with the developing world, now abound in the mighty United States.

As the U.S. Congress flirts with the once-unthinkable prospect of not paying the country's bills, the heated battle over a usually routine vote to lift the country's debt ceiling is dealing another blow to America's image.

OECD Promotes Panama to List of Financially Transparent Countries

WASHINGTON, July 22, 2011 /PRNewswire-USNewswire/ -- Following the signing of a double taxation agreement with France on July 6, the Republic of Panama was placed by the Organization for Economic Cooperation and Development (OECD) on its list of countries who have substantially implemented international standards for exchange of information, commonly known as the "White List."

Latin America swings to the left

LIMA, PERU -- The morning after Ollanta Humala won a photo-finish runoff for Peru’s presidency, rumors flew -- of a run on a grocery store in a high-end suburb, that the well-to-do would pull their money out of the country, that companies would pack up and take their investments elsewhere.

Even before official election results were announced, right-leaning media called for the left-leaning former army colonel to name his economy minister immediately, to calm fears.

Mexico inflation accelerates in early July

MEXICO CITY, July 22 (Reuters) - Mexico's annual inflation
rate accelerated more than expected in the first half of July
but not enough to change bets on the timing of interest rate
hikes next year.

Avoiding Brazil-Like Inflation Triggers Delay in Rate Bets: Mexico Credit

Traders are delaying forecasts for interest-rate increases in Mexico for the tenth time this year as slumping U.S. growth and declining food prices restrain inflation.

Yields on 28-day interbank rate futures due in April, known as TIIE, fell 16 basis points this week to 5.01 percent, indicating traders are betting the central bank will wait until that month to increase the key rate from a record low of 4.5 percent. In Brazil, traders are betting the central bank will raise its key rate by 25 basis points, or 0.25 percentage point, to 12.50 percent today, the fifth increase this year.

Role reversal: Latin America taunts U.S. on debt woes

(Reuters) - After three decades spent battling their own debt crises and getting constantly lectured about them by Uncle Sam, many Latin Americans are watching the countdown to a possible default in Washington with a mix of schadenfraude and fear of what a collapse might mean for them.

For everybody from presidents on down to street vendors, seeing U.S. politicians argue over where to make painful budget cuts has also been a reminder that those days are over in Latin America. For now, at least, as most of the region enjoys an era of economic prosperity and comparatively tiny deficits.

Mexico factory, industrial output jump in May

MEXICO CITY, July 12 (Reuters) - Mexico industrial
production in May rose more than expected, reversing three
months of declines, as an expansion in the factory sector gave
a boost to Latin America's second-largest economy.

Industrial production grew by 1.1 percent in May from April
MXIP=ECI, the national statistics agency said on Tuesday.
Analysts expected to see only a 0.3 percent month-on-month
expansion, while the year-over-year figure MXIPY=ECI grew by
4.6 percent compared to the forecast 3.4 percent

Brazil’s Gol Agrees to Buy Webjet to Gain Market Share

Gol Linhas Aereas Inteligentes SA, Brazil’s second-largest airline by market share, agreed to acquire Webjet Linhas Aereas SA for 96 million reais ($61 million), as it seeks to recover market share in Latin America’s biggest economy.

Sao Paulo-based Gol said in a regulatory filing today that the deal valued closely-held Webjet at 310.7 million reais, according to a regulatory filing. Webjet, a low-cost carrier based in Rio de Janeiro and controlled by Guilherme Paulus, is Brazil’s fourth-largest airline, with 5.2 percent of the country’s airline market.

Chavez's 'reverse miracle' with Venezuela's economy

Venezuelan President Hugo Chavez's critics took advantage of his absence for cancer treatment in Cuba to blame him for all kinds of misdeeds, but it's time to give him credit for having performed a true economic miracle in his country.

I'm not kidding. What Chavez has done in Venezuela over the last 12 years is nothing short of an economic miracle: Despite benefiting from the biggest oil boom in Venezuela's history, he has somehow managed to turn the country into a shambles.

Mexican Bank Holds Rates Steady On Tame Inflation, Slow Growth

MEXICO CITY—The Bank of Mexico on Friday left its overnight interest rate target unchanged at 4.5%, highlighting a slowdown in economic activity and a lack of overall inflation pressures in the economy.

The decision to leave the policy rate at the level it has been at since July 2009 came as no surprise, with the central bank widely expected to keep rates unchanged until the second quarter of 2012.

Peru May Hold 4.25% Rate for Second Month as GDP Slows Over Humala Concern

Peru’s central bank will probably keep its benchmark lending rate unchanged for a second month as inflation and economic growth slow on concern President-elect Ollanta Humala’s policies may damp investment in Latin America’s sixth-biggest economy.

The seven-member board will keep the overnight rate at 4.25 percent today, according to 16 of 17 economists surveyed by Bloomberg, after unexpectedly holding the rate unchanged at last month’s meeting for the first time this year. One analyst predicts a quarter-point increase to 4.50 percent. The board will announce its decision at about 7 p.m. New York time.

Brazil's Mantega mulls new currency measures

LONDON, July 5 (Reuters) - Brazil will continue to act to
curb the strength of its currency, with restraining excess
speculation in the futures and derivatives markets among
possible options, the country's finance minister said on
Tuesday.

Speaking on the sidelines of a conference in London,
Finance Minister Guido Mantega also said Latin America's
largest economy was on track for growth of around 4.5 percent
this year -- a forecast higher than the 4.0 percent predicted
by the central bank and the 3.94 percent seen by analysts.

SABMiller lifts Latin America beer target on economy boost

SABMiller, the world's No. 2 brewer and Anheuser-Busch InBev rival, raised its forecast on Tuesday for beer volume growth in its biggest region, Latin America, due to price cuts and a strengthening economic recovery.

The London-based brewer of Grolsch, Peroni and Miller Lite, which is bidding for Australian group Foster's, said regional beer volume in April-June was up around 6 percent while its key Colombian market had seen 10-percent plus volume growth in June.

In Americas, Brazil's Slide Speaks Loudly

While many Latin American stock markets took a hit during the second quarter as the global economic recovery sputtered, Brazil's benchmark Ibovespa index has not only been the worst performing in the region but also one of the weakest in the world.

Global crises such as the earthquake, tsunami and nuclear meltdown in Japan and Greece's continuing debt woes have crimped the economic recovery and weighed heavily on the index of Latin America's biggest economy. The commodity-heavy Ibovespa lost 9% in the second quarter, as Brazilian policy makers raised interest rates to stem inflationary pressure.

The Brazilian real has soared to a 12-year high against the dollar, reigniting Brazil’s currency war fears and worsening the economic headache for President Dilma Rousseff.

The real traded at a high of 1.5523 versus the US currency on Friday, its strongest level since just after it was first floated in 1999, as investors sought higher-yielding assets following the easing of the Greek debt crisis.

Chávez should get credit for economic miracle

Venezuelan President Hugo Chávez’s critics have taken advantage of his nearly three-week absence for treatment of an undisclosed illness in Cuba to blame him for all kinds of misdeeds, but it’s time to give him credit for having performed a true economic miracle in his country.

I’m not kidding. What Chávez has done in Venezuela over the past 12 years is nothing short of an economic miracle: despite benefiting from the biggest oil boom in Venezuela’s history, he has somehow managed to turn the country into shambles.

Slowing Inflation Unifies Traders’, Economists’ Rate Bets: Mexico Credit

Mexican traders and economists are pushing back their forecasts for interest-rate increases to next year, reaching a consensus for the first time in eight months as inflation slows in Latin America’s second-biggest economy.

Yields on the 28-day interbank rate futures due in January, known as TIIE, dropped 15 basis points, or 0.15 percentage point, in the past month to 4.99 percent, indicating traders are betting central bank Governor Agustin Carstens will wait until that month to raise the benchmark rate. Economists moved their forecast for a rate boost to March from January, according to a survey by Citigroup Inc.’s Banamex unit on June 20.

Biggest Bond Rally in 10 Months Fueled by Slowing Inflation: Mexico Credit

Mexican bonds are posting their biggest gain in 10 months on speculation slowing inflation will prompt the central bank to keep interest rates at a record low.

The yield on the government’s notes due in 2024 dropped 22 basis points in the five days ending June 24, the biggest weekly slide since August, to 7.07 percent, according to data compiled by Bloomberg. In Brazil, yields on the country’s real- denominated bonds maturing in 2021 climbed nine basis points, or 0.09 percentage point, during the same period, to 12.41 percent.

Analysis: "Lulismo" appeals in Latin America but hard to copy

(Reuters) - It was a political pilgrimage that surprised no one.

Within days of winning Peru's presidential election, Ollanta Humala flew to Brazil to learn more about its success over the past decade and meet former President Luiz Inacio Lula da Silva, who inspired Humala's journey from the radical left toward the political center.

China Fuels Latin America’s Biggest Debt Rally by Financing Ecuador Budget

Ecuador’s bonds are rewarding investors with the best performance in Latin America as Chinese loans and higher oil prices boost confidence in the economy two years after the country defaulted on $3.2 billion in debt.

Ecuadorean dollar debt has returned 13 percent this year, compared with 5.2 percent for Latin American sovereigns on average, according to JPMorgan Chase & Co. Yields on bonds due 2015 fell 238 basis points, or 2.38 percentage points, this year to 9.59 percent. Similar maturity Brazilian bonds yield 1.9 percent, down 97 basis points from the end of December.

Mexico Prices Unexpectedly Fell 0.05% in First Half of June Led by Food

Mexico’s consumer prices unexpectedly declined in the first half of June, dragged down by food and beverage costs in Latin America’s second-biggest economy.

Prices fell 0.05 percent in the first two weeks of the month, the central bank said in a report posted on its website today. Economists forecast a 0.11 percent rise, according to the median estimate of 14 analysts surveyed by Bloomberg.

Hedge Funds Pare Bullish Peso Bets as Record Rally Fizzles: Mexico Credit

Hedge funds and other investors are cutting their bullish bets on the Mexican peso by the most in 10 months on concern a slowdown in the U.S. economy will crimp demand for the Latin American country’s exports.

Wagers on the peso strengthening against the dollar outnumbered bets on a decline in the futures market by 48,163 contracts last week, down 47 percent from the same period ended June 7 and the biggest percentage decline since August, according to the Commodity Futures Trading Commission. The slump in the peso over the past month helped spark a 1.6 percent loss in dollar terms in local-currency Mexican government bonds, according to Bank of America Corp. Brazilian real-denominated notes gained 2.7 percent in the same period.

Latam stocks up after Brazil debt upgrade

SAO PAULO, MEXICO CITY, June 20 (Reuters) - Latin American
stocks rose on Monday after Brazil's debt was upgraded by
Moody's, although investors were cautious given concerns Greece
may struggle to convince Europe to give it more financial aid.

The MSCI Latin American index .MILA00000PUS edged up 0.47
percent, rising for the second session. The index bounced off
its lowest since September last week after fears deepened last
that a Greek debt default could spur a global financial
crisis.

Colombia central bank ups interest rate; pause seen

(Reuters) - Colombia's central bank on Friday raised its benchmark interest rate by 25 basis points to 4.25 percent, but analysts detected signals pointing to a pause in the bank's rate-hiking campaign this summer.

A majority of the bank's seven-member board voted for the hike, breaking with the board's consensus stance between February and May, when it raised rates monthly like other South American countries battling to control inflation.

Urban marketplaces, long common in Latin America, flourishing in Cuba amid economic changes

HAVANA — Marketplaces full of vendors hawking everything from food to religious items may be common sights across Latin America, but they’re springing up for the first time in the Cuban capital as the island’s Communist government opens its tightly controlled economy to some private-sector activity.

Nearly 140 official points of sale in abandoned structures, parking lots and crumbling old buildings have been established in recent months and are accommodating about 2,600 independent vendors, the Communist Party newspaper Granma reported Friday. The number of markets “should grow steadily,” Luis Carlos Gongora, vice president of Havana’s Provincial Administration Council, told the newspaper.

Analysis: Latam gets grip on inflation, Asia giants struggle

(Reuters) - Latin America is getting the upper hand on inflation that once ravaged the region but central banks in some of Asia's heavyweight economies are having a tougher time.

The question of who will win the battle of balancing policy to achieve optimum growth and inflation levels remains an open one, simply because potential price pressures from rising wages and demand are more elevated in India and China than in some of their Latin American peers.

Chile Slows Pace of Interest Rate Increases as 5.25% Nears ‘Neutral Level’

Chilean policy makers yesterday slowed the pace of interest-rate increases as growth in South America’s fifth-biggest economy eases and inflation expectations decline.

The central bank’s five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a quarter-point to 5.25 percent, matching the forecast of 16 of 19 economists surveyed by Bloomberg. Two analysts expected a fourth straight half-point increase and one forecast a pause.

Latin America’s candidate to head IMF speaks out

What irony! Despite all their grandiose rhetoric about Latin American unity, Brazil, Argentina and Chile have not yet come out in support of Agustín Carstens, the Latin American candidate to head the International Monetary Fund.

Earlier this week, I asked Carstens, a Mexican, whether he is disappointed that the three South American countries have failed so far to support his candidacy to succeed Dominique Strauss-Kahn, the former IMF chief who resigned after being charged with sexually assaulting a New York hotel maid.

China's Xi wants greater trade with Latin America

SANTIAGO, June 10 (Reuters) - Chinese Vice President Xi Jinping promised on Friday to press Chinese firms to step up investment in Latin America, as the world's No. 2 economy seeks to boost economic ties with the commodity-rich region.

Wrapping up a low-key Latin American tour that also took in Cuba and Uruguay, Xi said he wanted to increase trade volumes with Latin America, a major source of raw materials like copper.

Brazil in fourth interest rate rise

São Paulo, Brazil (FT) -- Brazil's central bank has increased rates for the fourth time this year to curb a rise in inflation amid tight labor market conditions.

The central bank on Wednesday evening boosted the benchmark Selic interest rate by 25 basis points to 12.25 per cent and maintained its strategy of a "prolonged" adjustment to deal with an inflation rate that has exceeded the upper limit of the official target range of 6.5 per cent.

EMERGING MARKETS-Latam FX weakens on global growth worries

MEXICO CITY/SAO PAULO, June 8 (Reuters) - Major Latin American currencies weakened on Wednesday as concerns about slowing U.S. growth and slim chances for further stimulus in the United States pushed investors to dump riskier assets.

Federal Reserve Chairman Ben Bernanke said late Tuesday the U.S. recovery remained fragile. Bernanke's comments followed a spate of economic data pointing to a slowdown in the world's biggest economy.

Cuba, China strengthen economic ties

Havana – Cuba and China signed in Havana 10 economic accords and memorandums of agreement in the areas of finance, oil, communications, information technology and other technical fields, in a move to strengthen bilateral relations.

The agreements were signed in the presence of Cuban head of state Raul Castro and visiting Chinese Vice President Xi Jinping.

Chile growth slows in April, small rate hike seen

SANTIAGO, June 6 (Reuters) - Growth in Chile's economy
slowed to 0.3 percent in April compared to March, the central
bank said on Monday, bolstering views that the bank will raise
its interest rate in June but at a slower pace.

The bank revised upward its IMACEC indicator of economic
activity to 0.6 percent in March against February, originally
reported as a 0.3 percent rise.

Brazil launches scheme to lift millions out of poverty

Brazil has launched a welfare scheme to lift millions out of extreme poverty by 2014, which President Dilma Rousseff calls her government's key priority.

The project aims to build on current programmes, which are credited with raising 20 million Brazilians out of poverty over the past decade.

Brazil’s Quickening First-Quarter Growth Challenges Effort to Cool Economy

Brazil’s economy gained speed in the first quarter, challenging President Dilma Rousseff’s efforts to cool growth and bring inflation to its target by next year.

Gross domestic product expanded 1.3 percent in the first quarter from the previous three-month period and 4.2 percent from a year earlier, the national statistics agency said today in Rio de Janeiro. Both figures matched the median forecasts of economists in a Bloomberg survey. Growth in the fourth quarter of 2010 from the previous three months was revised to 0.8 percent from 0.7 percent.

Brazil's Economic Boom Advances in First Quarter

RIO DE JANEIRO—Brazil's economy continued to expand at the start of 2011, fueled by record-low unemployment and higher wages that allowed families to boost spending.

Brazil's gross domestic product expanded 4.2% in the first quarter compared with the first quarter a year earlier, the Brazilian Census Bureau, or IBGE, said Friday. That was below the 4.5% median forecast made by eight economists polled by Dow Jones Newswires and down from year-on-year growth of 5% in the fourth quarter. But Brazil's economic boom actually gained steam in the first quarter, surging 1.3% compared with 0.8% growth in the fourth quarter, the IBGE said.

Latin America: The Quest for Talent

Some Latin American countries are now experiencing a “reverse” brain-drain.

BY JERRY HAAR
AND MARIA PRADILLA

In an increasingly competitive global environment, major firms know that talent recruitment and cultivation is an urgent challenge. Latin America is no exception. For example, Brazilian multinational firm Vale do Rio Doce has increasingly promoted people in their mid-30s to direct large projects, and it is ramping up its in-house training so those employees can qualify for the higher positions sooner. Thus, it is spending around $100 million with its global training programs in 2011, around 30 percent to 50 percent more than last year.

Brazil IGP-M inflation slows in May to 0.43 pct

SAO PAULO, May 30 (Reuters) - Brazil's broadest inflation
index rose less than expected in May, adding to signs that
price pressures in Latin America's biggest economy could be
receding after a worrisome advance earlier this year.

India, China lead global economic recovery: UN

The emerging economies of India, China and Brazil are leading the global economic recovery, according to a UN report released on Wednesday.

"The rebound has been led by the large emerging economies in Asia and Latin America, particularly China, India and Brazil," the report said.

From Currency wars to Trade wars

Economic growth in emerging markets is more than twice that in advanced economies (7.3% versus 3% in 2010, according to estimates by the International Monetary Fund). Not surprisingly, emerging markets are attracting capital inflows and have higher inflation rates (6.2% versus 1.6%). This is the case in much of Latin America. In its recent World Economic Outlook, the IMF recommends monetary tightening in emerging markets and continued monetary accommodation in the advanced economies. Alas, both pieces of advice could breed protectionism if not accompanied by effective capital controls.

S&P raises Brazil credit outlook

Standard & Poor’s has raised its outlook on Brazil’s credit rating to positive from stable, praising the Latin American country for diversifying its economy, increasing exports and fostering the growth of the middle classes.

The rating agency’s more bullish view follows Fitch’s upgrade to Brazil’s local and foreign currency debt to BBB in April this year and comes at a time when several European countries are struggling to emerge from the global financial crisis and suffering downgrades.

Latin American currencies rebound on German confidence

(Reuters) - Latin American currencies strengthened on Tuesday, led by Brazil's real and Mexico's peso, after stronger-than-expected economic confidence data in Germany, the world's fourth-largest economy.

The data lifted oil, copper, coffee and other commodities, the backbone of many Latin American economies, following yesterday's declines. That gave further support to the region's currencies.

Euro-zone fears drive Latin American stocks to 8-month low

Latin American stocks fell to an eight-month low on Monday as concerns that Europe's debt troubles were deepening combined with signs of slower growth in China and Europe to undermine equities around the world.

The MSCI Latin American index .MILA00000PUS fell 1.21 percent and closed at its lowest level since September as stocks in Brazil ended at their cheapest since July 2010.

Argentina is a risk worth taking

Argentina is a frontier market with an unpalatable tendency for suffering economic crises and political instability. But it is also one where risk-takers can reap rewards.

That is why, despite the warning signs of economic overheating and inflation expected to climb to around 30 per cent this year, institutional investors are finding appeal, especially in the fixed income market.

Drawn into an ever closer embrace

This month the vessel that will come to define early 21st-century trade between Latin America and Asia arrived in Guanabara Bay, the picturesque harbour of Rio de Janeiro.
The Vale Brasil, commissioned by Vale, the Brazilian miner and the world’s largest exporter of iron ore, is the first of a new breed of bulk carrier, known as the Chinamax. With a capacity of 400,000 tonnes and measuring 362m in length and 65m in width, this goliath can carry twice as much iron ore as most vessels now plying the route between Brazil and China.

Rising food prices could sway voters in Latin America

The rising cost of food in Latin America is squeezing workers and families already struggling to survive below the poverty line and could give opposition parties a boost in elections from Peru to Mexico.

Governments are scrambling to contain food prices and inflation in general, handing out discounted beef in Argentina and helping small Mexican food producers buy contracts in financial markets to buffer against higher corn prices.

Chile Economy Grows 9.8%, Most in 15 Years, as Nation Rebuilds After Quake

Chile’s economy expanded the most in 15 years in the first quarter, outpacing other major Latin American economies as consumer spending jumped and manufacturing recovered from the biggest earthquake in half a century.

The economy grew 9.8 percent from a year earlier, the central bank wrote on its website today, matching the median estimate of 14 economists surveyed by Bloomberg.

Venezuela’s Recovery From Latin America’s Longest Slump Gaining Momentum

Venezuela’s gross domestic product expanded at the quickest pace in almost three years in the first quarter as government spending backed by higher oil prices helped the economy emerge from Latin America’s longest recession faster than expected.

The country’s GDP rose 4.5 percent in the first three months of the year from the same period in 2010, the central bank said today in an e-mailed statement. Growth was more than twice as fast as the 1.7 percent median estimate of eight economists surveyed by Bloomberg.

Securing global economic security

Inflation is a significant factor of global economic security and has the innate capacity to upend carefully laid plans

Cuba-Mexico Inter-parliamentary Meeting Ends

Mexico, May 14.- The XII Mexico-Cuba Inter-parliamentary Meeting, which began Thursday, closed this Saturday in Merida, Yucatan.

Today’s discussions dealt with issues relating to Latin American integration, the situation in the Caribbean and Cuba.

These kinds of meetings are regularly held to boost bilateral economic cooperation and tourism, as well as talks on climate change and natural disaster prevention.

EDP May Sell as Much as 14% of Brazil Unit in Public Offering

May 14 (Bloomberg) -- EDP-Energias de Portugal SA, the biggest power company in Portugal, said it may sell a stake of as much as 14 percent of its Brazilian unit in a public offering as Latin America’s biggest economy expands.

The Portuguese utility currently holds 64.8 percent of the EDP-Energias do Brasil SA unit, Lisbon-based EDP said in a filing posted on the website of Portugal’s securities regulator.

Spanish economy weighs heavy on Telefónica

Spain’s stuttering economy weighed on Telefónica in the first quarter as growth at the eurozone’s biggest telecoms operator continued to be driven by its Latin American operations.

Telefónica said that revenues in its Spanish business fell by 5.6 per cent in the first quarter to €4.37bn ($6bn) driven by high levels of unemployment and increased price-based competition among domestic operators.

Peru, hawkish Chile hike rates in inflation fight

SANTIAGO/LIMA, May 12 (Reuters) - Chile surprised markets
with a third aggressive rate hike on Thursday and Peru kept up
its monetary tightening as the Latin American countries fought
inflation expectations driven by global food and oil prices.

Chile's central bank defied forecasts for a more moderate
hike, raising its benchmark rate 50 basis points to 5.0
percent, its highest level in over two years. It said more
increases would be needed.

Latin America must trace its own path out of crisis, Fernandez says

SANTO DOMINGO.- President Leonel Fernandez yesterday said he regrets that since the two years when the global economic crisis began, the formulas to solve it have yet to be found, for which he suggests that Latin America adopt a regional position to surpass it.

He also proposed fusing the neoliberal and neopopulist economic currents, to look for a third option as a viable solution to the crisis. "It’s there, where we were at the moment, how to look for the solution, overcoming neoliberalism and neopopulism, and perhaps the answer is to integrate the two, in linking State with market, that’s the other great polemic."

Latam inflation slows, easing rate hike pressure

SAO PAULO/SANTIAGO, May 6 (Reuters) - Inflation slowed in
Brazil and Chile in April as price-fighting efforts by
policy-makers gained traction, prompting some economists and
investors to scale back expectations for interest rate hikes.

The slower pace of inflation in April eases pressure on
central banks in both countries to raise interest rates sharply
to contain prices, which would risk derailing brisk growth.

Foreign Investment Returns to Latin America

MEXICO CITY—Foreign direct investment in Latin America and the Caribbean is recovering from pre-crisis levels thanks to the boom in commodities and the rising interest of China in the region.

Investment by foreign entities rose by 40% in 2010 to $113 billion, a report by the United Nations showed. South America, and in particular Brazil, was the primary beneficiary of the funds, followed by Mexico, said Alicia Barcena, executive secretary of the U.N. Economic Commission for Latin America and the Caribbean (ECLAC.)

Latin America in bloom

HSBC’s head of macro and investment strategy Philip Poole recounts his time in Latin America and the progress the region has made recently.

I recently spent a fortnight in some of the smaller markets in Latin America – countries that historically have not received the level of attention the larger regional markets have been benefitting from for some time now.

IMF warns Latin America of "overheated" economy, high inflation

PANAMA CITY, May 4 (Xinhua) -- Latin American countries face an economic "overheating" with high consumer inflation, the International Monetary Found (IMF) said on Wednesday.

Luis Cubeddu, assistant director of regional studies for the IMF, said the current favorable economic conditions for the region will not be permanent. Cubeddu was speaking at a joint press conference held here together with the IMF representative for Central America, Fernando Delgado.

Brazil Output Slowed Less Than Expected in March as Economy Remains Heated

Brazil’s industrial output slowed less than economists expected in March, raising concern that Latin America’s biggest economy is still expanding at a pace that stokes inflation.

Output rose 0.5 percent in March from the previous month, the national statistics agency said today in Rio de Janeiro. That’s more than the 0.2 percent median forecast in a Bloomberg survey of 31 analysts. Production fell 2.1 percent from a year ago, the first year-on-year decline since 2009.

GE targets Latin America for growth

Revenues at General Electric’s Latin American operations surged 30 per cent in the first quarter of this year from the same period in 2010 and should continue to climb as the rapidly growing region rushes to improve its creaking infrastructure, the US industrial group has told the Financial Times.

Emerging market countries, and especially Brazil, which is preparing to host the soccer World Cup in 2014 and the Olympic Games two years later, are increasingly being seen as a strategic base for GE as it looks to slim down its financial businesses and focus more on industrial projects.

Argentina to grow more than 6.5 pct in 2011-cenbank

(Reuters) - Argentina's central bank sees economic growth topping 6.5 percent this year, raising its outlook from 6 percent in January, according to a quarterly report released late on Friday.

The central bank said robust domestic demand would keep fueling the expansion in Latin America's No. 3 economy. It said growth so far this year in industrial output, construction and public services showed the economy was still going strong.

Microsoft Latin American Sales Grew As Fast As 36%, Rincon Says

Microsoft Corp. (MSFT)´s revenue in Latin America is growing as fast as 36 percent as rising incomes and lower computer prices bolster demand, said Hernan Rincon, the company´s president for the region.

Microsoft’s sales surpassed the growth of the area’s information technology industry, which is expanding at 12 percent, he said.

Citigroup steps up hiring in Brazil

Citigroup has stepped up hiring in Brazil, joining a growing war for talent among foreign banks seeking greater market share in Latin America’s largest economy.

Citi has hired 380 people in April in the country on top of 400 it hired in the first quarter and 500 last year across all business areas, executives said on Wednesday during a visit by Vikram Pandit, Citi chief executive.

Latin America’s trading bootstraps

From independence, Latin American countries’ dream of a more united continent was on the horizon – where it remained stuck for two centuries. Today, deepening trade ties are finally advancing the integration so long frustrated by the politics of national narcissism.

It is hard to think of a region that has more to gain from deeper interregional economic ties. Latin America’s cultural and linguistic affinities should make it a natural single market – with a scale large enough to compensate for the cost of overcoming the continent’s big natural barriers. But this ambition long fell foul of inward-looking and misguided governments.

Commentary: Panama's economy is booming, but institutions aren't

PANAMA CITY — Latin America's most strategically located country is booming, and its current prosperity is expected to accelerate in coming years thanks to a windfall of profits from the Panama Canal's expansion. And yet, there are fears about the country's future.

There is widespread anxiety — including from senior U.S. diplomats, according to recently released WikiLeaks cables — that President Ricardo Martinelli's bullying governing style might lead to an excessive accumulation of powers, increased corruption, political turbulence, capital flight, and an economic downturn.