Bloomberg News

Latin Day Ahead: Argentine Air Force to Contain Locust Plague

November 25, 2009

Argentina will deploy two air force planes to contain a potential locust plague; Telesp - Telecomunicacoes de Sao Paulo SA was downgraded to “underperform” at Credit Suisse Group AG; Sugar may jump 36 percent to a 29-year high after a drought damaged crops in India; Daiwa Securities Group Inc.’s Brazilian stock fund has attracted the second-largest start-up pool of money of any Japanese fund this year.

TOP STORIES; MOST READ ON BLOOMBERG

Argentina Will Send Air Force Planes to Contain Locust Plague

Argentina will deploy two air force planes to contain a potential locust plague and said rains may help control the insect in the country’s largest wheat province.

Telesp Cut to ‘Underperform’ at Credit Suisse on Competition

Telesp - Telecomunicacoes de Sao Paulo SA, the Brazilian unit of Telefonica SA, was downgraded to “underperform” from “neutral” at Credit Suisse Group AG.

Sugar May Advance 36% on India Deficit, Bajaj Says

Sugar may jump 36 percent to a 29-year high after a drought damaged crops in India, forcing the nation to import for a third year, according to Bajaj Hindusthan Ltd., the country’s top producer.

Daiwa’s Brazilian Stock Fund Gets Kick-Start From 2016 Olympics

Daiwa Securities Group Inc.’s Brazilian stock fund has attracted the second-largest start-up pool of money of any Japanese fund this year thanks partly to an Olympic boost, the company said.

MAIN COMPANIES

Brazil

Duratex SA (DTEX3) (DTEX3 BZ): The maker of bathroom fittings and wood panels had its stock rating raised to “buy” from “hold” at Banco Santander SA, which said the company will benefit from merger synergies and stronger demand. The stock rose 4.2 percent to 14.59 reais.

EDP-Energias do Brasil SA (ENBR3 BS): The Brazilian unit of EDP-Energias de Portugal SA, the biggest power company in Portugal, is selling 15.5 million shares for 28.50 reais each, raising 441.8 million reais ($255 million) to pay off debt. Energias do Brasil rose 1 percent to 29.10 reais.

Telesp - Telecomunicacoes de Sao Paulo SA (TLPP3 BZ): The Brazilian unit of Telefonica SA, was downgraded to “underperform” from “neutral” at Credit Suisse Group AG.

“Operating results are likely to be under pressure from alternative carrier-cable competition and mobile substitution,” the bank wrote in a report dated Nov. 24. The stock fell 0.5 percent to 39.80 reais.

Usinas Siderurgicas de Minas Gerais SA (USIM5 BS) and Cia. Siderurgica Nacional SA (CSNA3 BS): Brazil will extend tax cuts on sales of so-called flex-fuel vehicles, which can operate on fuels other than gasoline, through March to encourage consumers to buy cars that pollute less, Finance Minister Guido Mantega said. Tax cuts on other vehicles are set to expire by the end of the year. Usiminas, Brazil’s biggest maker of flat steel for the auto industry, rose 2 percent to 50.28 reais. CSN, the second- biggest, fell 0.8 percent to 59.37 reais.

Chile

Soc. de Inversiones Oro Blanco SA (OROB CC): Shares in the Santiago-based investment company will be auctioned at 10:30 a.m. New York time on Chile’s exchange. A block of 7.79 billion units will be offered at a minimum of 8.6 pesos each, while 250 million will be sold at 8.3 pesos, according to a note posted by the Santiago exchange. Oro Blanco fell 1.1 percent to 7.9 pesos.

Mexico

Telefonos de Mexico SAB (TELMEXL MM): The phone company controlled by Carlos Slim increased its top advertised Internet download speed to keep customers from switching to Grupo Televisa SAB and Axtel SAB. Telmex, as Mexico’s largest phone company is known, increased the speed of its most expensive Internet and phone package by 25 percent to 5 megabits per second, according to information on its Web site. Telmex fell 0.1 percent to 11.42 pesos.

LATIN AMERICAN MARKETS:

Mexico: The current account deficit was $2.41 billion in the third quarter, reversing a $454 million surplus in the previous quarter, according to the median estimate in a Bloomberg survey of 14 economists. The government will publish the data at 10 a.m. New York time.

The peso gained 0.4 percent to 12.9069 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 decreased eight basis points, or 0.08 percentage point, to 8.09 percent, according to Banco Santander SA.

Other prices in Latin American markets:

Brazil: The real fell 0.6 percent to 1.7366 per dollar.

The yield on Brazil’s zero-coupon, real-denominated bond due in January 2010 rose one basis point to 8.66 percent, according to Bloomberg prices.

Chile: The peso fell 0.3 percent to 493.95 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, was unchanged at 3.26 percent, according to Bloomberg composite prices.

Argentina: The peso fell 0.1 percent to 3.8014 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 fell three basis points to 10.71 percent, according to Citigroup Inc.’s local unit.

Colombia: The peso weakened 0.4 percent to 1,974.93 per dollar.

The yield on Colombia’s 11 percent bonds due in July 2020 fell 19 basis points to 7.84 percent.

Peru: The sol fell 0.3 percent to 2.8865 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 rose one basis point to 5.03 percent, according to Citigroup Inc.’s unit in Lima.

ECONOMIES: Brazil will post FGV consumer confidence, total outstanding loans, private bank lending and its central government budget; Mexico will report its third-quarter current- account balance and nominal gross domestic product; Argentina will release October shopping center sales.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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