Banco Bradesco SA was downgraded at HSBC; Colombia’s former Finance Minister Alberto Carrasquilla said a fund he’s helping form will buy delinquent bank loans at a discount; Mexico’s Health Minister said the World Health Organization will develop a vaccine for swine flu; Petroleo Brasileiro SA found more oil in an onshore block.
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Banco Bradesco Shares Cut at HSBC on VisaNet IPO, Bad Loans
Banco Bradesco SA was downgraded to “underweight” from “neutral” at HSBC Holdings Plc, which said bad loans will increase and investors are “overly valuing” the Brazilian bank’s potential gain from the sale of shares in its credit-card unit.
Colombia’s Carrasquilla to Buy Bad Debt at Discount for Fund
Colombia’s former Finance Minister Alberto Carrasquilla said a 500 billion-peso ($222 million) fund he’s helping form will buy delinquent bank loans at discounts as deep as 70 percent, taking advantage of a surge in defaults.
Mexico Health Minister Says WHO to Develop Swine Flu Vaccine
Mexican Health Minister Jose Cordova said the World Health Organization is sending a specialist to Mexico today to begin developing a vaccine for the swine flu virus that’s killed more than 30 people worldwide.
Petrobras Discovers More Oil in Onshore Espirito Santo Block
Petroleo Brasileiro SA, Brazil’s state-controlled oil company, found more evidence of oil in an onshore block in the country’s Espirito Santo Basin, the Brazilian petroleum regulator said.
Empresa Distribuidora y Comercializadora Norte SA (EDN AF): Argentina’s biggest power distributor sold 75.7 million pesos ($20.5 million) in bonds at a nominal rate of 6.75 percent. The company sought to sell as much as 150 million pesos worth of the notes, which mature in 2013, the company known as Edenor said in a filing with the Buenos Aires Stock Exchange. Edenor rose 5.6 percent to 85.5 centavos.
Transportadora de Gas del Sur SA (TGSU2 AF): The Buenos Aires-based natural gas processor and transporter reported a first-quarter net loss of 11.7 million pesos, compared with a year-earlier profit of 80.7 million pesos. Income from the production of natural gas liquids including butane and propane dropped 47.6 percent, the company, known as TGS, said in an e- mailed statement yesterday. TGS rose 2.7 percent to 1.53 pesos.
Braskem SA (BRKM5) (BRKM5 BS): Shareholders of Latin America’s largest petrochemicals producer and of Petrobras Quimica SA, a unit of state-controlled oil producer Petroleo Brasileiro SA, approved the takeover of Petroquimica Triunfo SA by Braskem. Braskem gained 3.8 percent to 6.91 reais.
Cia. Vale do Rio Doce (VALE5 BS): The world’s biggest iron- ore producer is expected to report profit of $1.66 billion today after the close of markets, according to the average of four estimates compiled by Bloomberg. Vale fell 0.8 percent to 32.89 reais.
Invertec Pesquera Mar de Chiloe SA (INVERMAR CC): The salmon producer seeking to restructure debt hasn’t yet reached an accord with banks, it wrote in a statement posted yesterday on the Web site of Chile’s securities regulator. Invermar fell 3 percent to 133.9 pesos.
LATIN AMERICAN MARKETS:
Brazil: Industrial output rose for a third month in March, adding to signs that Latin America’s biggest economy is pulling out of its worst contraction on record. Production rose 0.7 percent in March from February, after gains of 1.9 percent and 2.1 percent in the first two months of 2009, the national statistics agency said yesterday.
The real declined 1.5 percent to 2.1470 per dollar.
The yield on the zero-coupon, real-denominated bond due in January 2010 fell four basis points, or 0.04 percentage point, to 9.77 percent, according to Banco Votorantim.
Mexico: The federal government will provide 27.4 billion pesos ($2.1 billion) in aid to help the economy recover from the effects of the country’s swine flu outbreak, Finance Minister Agustin Carstens said yesterday.
The peso fell 0.4 percent to 13.29 per dollar.
The yield on Mexico’s 10 percent bond due December 2024 fell nine basis points to 7.85 percent, according to Banco Santander SA.
Other prices in Latin American markets:
Argentina: The peso fell 0.1 percent to 3.6985 per dollar.
The yield on the country’s inflation-linked peso bonds due in December 2033 fell 48 basis points to 20.42 percent, according to Citigroup Inc.’s local unit.
Chile: The peso climbed 0.2 percent to 571.45 per dollar.
The yield for a basket of Chile’s 10-year fixed-rate peso bonds rose 10 basis points to 2.74 percent, according to Bloomberg composite prices.
Colombia: The peso advanced 1.3 percent to 2,251.14 per dollar.
The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose two basis points to 8.95 percent, according to Colombia’s stock exchange.
Peru: The sol rose 0.2 percent to 2.9703 per dollar.
The yield on Peru’s 8.6 percent bond maturing August 2017 fell five basis points to 4.97 percent, according to Citigroup Inc.’s unit in Lima.
ECONOMIES: Argentina will announce April vehicle sales; Bolivia will publish April consumer prices.
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