Bloomberg News

Andean Daybook: Peru Narcotics Conference and Ecuador Reserves

June 24, 2012

Peruvian President Ollanta Humala will inaugurate a two-day Counternarcotics Conference in Lima, featuring drug czars, foreign and interior ministers and other delegates from 69 countries including the U.S., Russia, India and Argentina.

WHAT TO WATCH: *Ecuador’s central bank is scheduled to publish its weekly international reserves report today at 11 a.m. in Quito.

ECONOMY: *Colombia’s Justice Minister Juan Carlos Esguerra resigned over a reform of the justice system that could paralyze investigations into politicians with links to illegal paramilitary groups. *Newmont Mining Corp. (NEM:US) said it will build water reservoirs at its $4.8 billion Minas Congas gold project in Peru, before building the mine installations, to benefit surrounding communities. The project was suspended by the government after protestors blocked roads fearing the project would dry up local water supplies. *Peru expects growth rates of close to 6 percent this year, fueled by domestic demand and construction activity, Finance Minister Miguel Castilla told reporters June 22. *PetroEcuador’s Esmeraldas restarted production after power failure suspended operations for one day. *BHP Billiton Ltd. has to spend $4 billion to raise annual copper output at its Escondida mine in Chile to return to 2008 output level of 1.3 million metric tons, said Peter Beaven, the company’s head of base metals.

EQUITIES: *Empresas Copec SA (COPEC) , Chile’s biggest forestry company, had its credit rating lowered by one level to BBB by Standard & Poor’s. *Chile’s Lan Airlines SA (LAN) completed the takeover of Brazil’s Tam SA (TAMM4) to create Latam Airlines Group SA. Latam’s credit rating was lowered to junk by Fitch Ratings. *Cencosud SA (CENCOSUD CC), Chile’s largest retailer by sales, priced 91.3 million new shares at 2,600 pesos each in Chile and New York. The sale is part of a planned sale of 243 million new shares to raise about $1.3 billion to pay short term debt and fund expansion plans. *Ecopetrol SA (ECOPETL) , Colombia’s largest oil company, had its recommendation cut to sell at Citigroup Inc.

MARKETS: *Chile: IPSA Index (IPSA) fell 0.1 percent to 4,358.84; MSCI Chile Index (MXCL) dropped 1.3 percent to 2,353.99; Peso weakened 0.2 percent to 503.17. *Colombia: IGBC Index (IGBC) declined 0.8 percent to 13,439.95; Colcap Index (COLCAP) retreated 0.3 percent to 1,633.51; Peso decreased 0.8 percent to 1,791.03. *Peru: Lima General Index (IGBVL) rose 0.4 percent; MSCI All Peru Capped Index fell 0.3 percent; Sol rose 0.1 percent to 2.6508.

To contact the reporter on this story: Eduardo Thomson in Santiago at

To contact the editor responsible for this story: David Papadopoulos at

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Companies Mentioned

  • NEM
    (Newmont Mining Corp)
    • $19.17 USD
    • 0.67
    • 3.5%
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