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Latin America: Investors Newsletter 31 August 2012

Mexico

Analysis: Spanish cloud may mean discount for Santander Mexico listing
Mexico Pension funds hungry for Santander unit offering
Colombia Considering Move From Brazil’s to Mexico’s IMF Group
Delta Repair Center With Aeromexico to Boost Aerospace Hub in Queretaro
Brazil

Fitch says Brazil’s infrastructure plan as execution risk
SEC Charges Brokers for Defrauding Brazilian Public Pension Funds
Will increased stimulus for Brazilian transport infrastructure be sufficient?
Brazil’s BES Investment Bank Focuses on Infrastructure
Canadian pension funds cautious on Brazilian infrastructure plan

Latin America

Colombia Brags of Overtaking Argentina as Echeverry Eyes IMF Job
Colombia-led Group to Build $396 Million Peru Highway
Ferrovial sells BAA stake to fund Latin America push
Is Venezuela about to open up to foreign oil investment?
Investment insights from a Peruvian beach
YPF chief promises to protect foreign oil companies’ profits if they invest in Argentina

See also LIQ Latin America Infrastructure ALI Alternative Latin Investor  or MercoPress more information about Latin America

Filed under: Argentina, Brazil, Chile, Colombia, Latin America, Mexico, News, Peru, Venezuela, , , , , , , , , , , , , , ,

Latin America: Investors Newsletter 15 June 2012

Petrobras Is Worst Big Oil Investment on Deepwater Disappointments: Energy   Petroleo Brasileiro SA is the worst investment among the world’s biggest oil companies this year as Brazil’s state-controlled producer suffers delays and cost overruns developing the largest oil finds in more than a decade.

Iusacell, Telefonica to challenge Mexico’s Slim America Movil  – Iusacell and Spain’s Telefonica said on Wednesday they have reached a deal to share their infrastructure in Mexico as they seek to mount a

FX swings may stir debt investors in Mexico, Peru  Mexico, Peru debt mkts most vulnerable to outflows in Latam. * Peru acting to curb FX, Mexico avoiding intervention.

Mexico’s Slim family (Grupo Carso) takes stake in Argentina YPF nationalized enegy company Mexican tycoon Carlos Slim and his family have taken a stake in Argentina’s recently renationalized energy company YPF in lieu of a loan guarantee, ..

Filed under: Argentina, Brazil, Energy & Environment, Latin America, Mexico, News, Risk Management, Venezuela, , , , , , , , , , , , , , , , , , , , , , ,

Asia calls for own Rating Agency

Asia needs to establish an Asian-owned and managed rating agency as years of Western domination of finance has created an inherent systemic bias impeding the progress of Asian banks.

CIMB group chief executive Datuk Seri Nazir Razak said this was necessary, especially since Asia was the main supplier of investment funds.

“It seems that even when Asians look at one another, we tend to use Western spectacles. The clearest evidence is our reliance on global credit rating agencies,” he said in his keynote address at the Third Euromoney Thailand Investment Forum in Bangkok, Thailand, yesterday.

Nazir said he could not understand the basis of China, the world’s biggest lender, being accredited “A1” by Moody’s compared with “AAA” for the UK and “AA2” for Italy.

“Fitch is no different: China at ‘A+’, UK at ‘AAA’ and Italy ‘AA-‘. The story is not too different for bank ratings: Asia’s lowly leveraged banks versus US and European banks with ‘intoxicated’ balance sheets.”.

Nazir said ratings affected how banks allocated capital and influenced the level of transactions conducted between banks, adding that sovereign ratings also defined the ceiling for national bank and corporate ratings, amplifying ramifications of the problem.

“As if that isn’t enough, the introduction of Basel II would compound the problem as loans would also be subjected to ratings, trapping the entire credit system in this biased web.”

He also said that the current crisis, which started in the US, provided a unique window of opportunity for Asian banks to decisively alter the share of global banking in their favour.

“Once Asians have a greater share of global finance, I think that we will also see a more balanced and equitable world where Western perspectives give way to global perspectives, where a new financial architecture is designed without prejudices and where intra-Asian trade and investment flows grow exponentially.”

Source:  Intellasia.net, Busines Times Malaysia 11.06.2009

Filed under: Asia, China, Data Vendor, India, Malaysia, News, Risk Management, Thailand, , , , , , , ,