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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

British Airways’ Commitment To Latin America Continues With Rio Increases

The FINANCIAL -- British Airways is increasing its services to Brazil by doubling its weekly frequency to Rio de Janeiro from three to six flights.

Neil Cottrell, British Airways’ head of network planning, said: “We are experiencing a real increase in demand for Rio and by doubling the number of frequencies, we are able to offer our customers more choice and greater availability. Brazil is also experiencing strong economic growth and this capacity increase is a great opportunity for British Airways to be part of that growth.”

JPMorgan strategy aims to harness growth

In September 2008, the International Council of JPMorgan was scheduled to hold its annual meeting in São Paulo to familiarise members with Latin America’s largest economy ahead of a planned expansion.

But days later, Lehman Brothers imploded and the visit by the high-level advisory board, headed by former British prime minister Tony Blair and including luminaries such as former US secretary of state, Henry Kissinger, was postponed.

Brazilian Interest-Rate Futures Yields Rise on Interest Rate Concern

Yields on Brazilian interest-rate futures contracts rose as traders bet the central bank will boost borrowing costs by more than anticipated to cool inflation running at the fastest pace in more than two years.

The yield on the contract due in January 2012 climbed 3 basis points, or 0.03 percentage point, to 12.19 percent at 12:58 p.m. New York time. The yield on the contract due in January 2021 rose 3 basis points to 12.57 percent.

IDB to provide more funds to Latin America, Caribbean

WASHINGTON DC, USA (CMC) — The Inter-American Development Bank (IDB) yesterday said it plans to increase financing to the private sector in Latin America and the Caribbean.

IDB President Luis Alberto Moreno said the initiative is part of the plans to boost its support for projects that have a positive impact on development in the region.

In the Spotlight: Will new economic boom be in Latin America?

"May you live in interesting times." So goes the oft-quoted curse. It can hardly be disputed that we live in exciting times, as dramatic events far from home capture our collective attention.

The Jasmine Revolution continues to roil political systems around the globe, while at the same time the developing economies of Asia are offered as proof of a rising new world order led by India and China. These far-flung events undoubtedly have implications for us.

Argentina, Brazil Sign Energy, Internet, Transportation Deals

BUENOS AIRES—The presidents of Argentina and Brazil signed a broad range of agreements Monday to cooperate on everything from nuclear power development to broadband expansion and regional pharmaceutical standards.

In her first state visit abroad, Brazilian President Dilma Rousseff met with Argentine President Cristina Kirchner to underscore the importance of political and economic ties between the countries.

The presidents, who touted the meeting as a historical event between two women who lead South American nations, pledged to build literal and figurative bridges between the nations.

Among other things, they will work together to promote the development of biofuels in the region, share research on two new 30-megawatt nuclear reactors, exchange electricity and boost broadband access in the region.

In addition, the presidents said they will work together on common pharmaceutical goals that should help the counties to reduce their "dependence" on imported drugs from other regions.

Meanwhile, the cooperation in nuclear research on the new reactors will be based on a reactor that the Argentine technology company Invap produced for Australia.

The multipurpose reactors will allow for joint work on radioisotopes and food irradiation, among other things.

The countries will also build a new international bridge that crosses the Pepiri-Guazu river to connect the cities of San Pedro in Argentina and Paraiso in Brazil.

Ms. Rousseff, a 62-year old former leftist guerilla, was elected Brazil's first woman president last October after serving as a cabinet minister in the government of her predecessor, the immensely popular Luiz Inacio Lula da Silva. It was the first time Ms. Rousseff had run for elective office.

Argentina's president, by contrast, is a consummate politician. A trained lawyer, Ms. Kirchner, 57, has had stints as senator for the provinces of Santa Cruz and Buenos Aires before succeeding her husband, the late Nestor Kirchner, in the presidency in 2007.

The countries also pledged to work together on public housing projects and the joint promotion of trade and exports to other countries.

Argentina and Brazil were rivals for much of the 20th century. However, Argentina's influence has waned on the continent as Brazil reaps the fruits of nearly two decades of political stability and economic reforms.

Brazil, which boasts Latin America's largest economy, is increasingly flexing its economic and political muscle abroad. Brazilian corporations are global heavyweights in mining, aerospace, steel and food processing, while Brazil's voice is increasingly heard in the Group of 20 industrialized and big emerging nations, and in other international organizations.

Political continuity and economic stability have proven elusive in Argentina. The free-market policies of the 1990s, which are blamed for devastating local industry, were followed by a sovereign debt crisis and economic meltdown in 2001-2002.

Argentina's economy has posted high levels of growth under Ms. Kirchner and her husband, but at the cost of inflation that is widely believed to be running more than double the official 10.9% reported for 2010.

Argentina, South America's No. 2 economy, and Brazil have increasingly looked to cooperate on trade and foreign policy issues. Brazil has backed Argentina's claims of sovereignty over the Falkland Islands, which the United Kingdom controls, and the two neighboring nations dominate the southern cone customs union, known as Mercosur, whose other founding members are Uruguay and Paraguay.

Brazil is also Argentina's top trading partner. Trade between the neighboring countries has grown tenfold in the last two decades to nearly $33 billion last year.

Source: http://online.wsj.com

Colombia, Mexico Criticize Rich Countries On Monetary, Fiscal Policies

PARIS (Dow Jones)--Latin American countries Monday criticized rich countries' monetary and fiscal policies that hurt their economies through currency swings.

During a seminar held in Paris on Monday, the Colombian President Juan Manuel Santos criticized the loose monetary policy in rich countries.

"This policy of issuing money to get out of recession is reevaluating currencies in Colombia, Chile, Brazil and all the countries in Latin America," Santos said in a speech in Paris, where he attended a forum to discuss the economic situation.

The strong currencies in Latin America in turn hurt those countries' exporters, who lose competitiveness, he added.

The policy of interest rates close to zero and the massive cash pumping into the economy through a quantitative easing program is counterproductive, Santos added. "If we want to get France, Spain, the U.S. out of recession with dynamic exports, the best recipe is to put countries that imports those goods, not killing their growth capacity."

Santos mentioned the possibility to set up controls on capital inflows toward emerging countries as a possible solution to the currency appreciation.

Santos position is contradictory, Goldman Sachs Economist Alberto Ramos said. Latin American countries' economies are doing well so they are attracting investors and the flow of capitals make their currencies stronger, which is a good indicator. But on the other hand, Latin American countries need a swift recovery in the rich world to secure a demand for the goods they produce.

Quantitative easing is a good way for developed countries to keep their economies afloat. If growth in wealthy countries faltered, commodity prices would plummet and this wouldn't be the best thing for emerging markets.

During his speech, Santos said Latin American countries, which have known devastating crises in the past, can certainly teach lessons to some beleaguered developed countries who struggle under the weight of excessive debt and gaping budget deficits.

Mexican Finance Minister Ernesto Cordero, who also attended the forum in Paris, opposes capital controls. He suggested Latin American countries instead reduce their fiscal deficits so they can loosen their monetary policy, setting lower interest rates, and reduce the effects of carry-trade on their currencies.

The carry-trade is the investment strategy consisting of borrowing in a currency from a low-interest-rate country to invest the proceeds in a currency from a country with higher rates.

Cordero's ideas are more likely to have a positive effect than Santos's, Goldman Sachs's Ramos said.

Cordero, whose country will lead the Group of 20 industrial and developing countries in 2012, also said wealthy nations should focus on fiscal discipline.

As Mexico expects its deficit to reach the equivalent of a modest 0.5% of gross domestic product, excluding the investment program of its state-owned oil firm, its economy is likely to grow a decent 4% in 2011.

As Latin America weathers the financial crisis in a better position than Europe and the U.S., its leaders want more say in the world's financial debates. Santos asked France, who heads the G-20, to consult non-member countries such as his during this year's talks.

Source: http://online.wsj.com