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.