Globo Comunicacoes e Participacoes, the unit of Brazilian conglomerate Globo that owns the group’s film and TV studios and its investments in cable television, has persuaded owners of 81 percent of $980 million of bonds to accept new bonds and cash for defaulted debt. Investors holding the remaining debt agreed to a similar swap in March. The accord, under negotiation since 2002, lets Globo avoid selling television stations put up as collateral.
Category: Daily Brief
Posted inDaily Brief
G-Mex’s Profit Jumps
Mining and metals giant Grupo Mexico (G-Mex) reported net earnings of $251 million for the first quarter of 2005, a 51 percent increase year-on-year. G-Mex’s consolidated earnings for the quarter were $1.25 billion, up 43 percent. The company is currently planning a three-for-one share split to boost its liquidity on the Mexico City stock exchange.
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Gutierrez Says Removal Unconstitutional
Former Ecuadorian President Lucio Gutierrez, speaking from the Brazilian embassy in Quito, has complained that his removal from office was unconstitutional. Congress stripped Gutierrez of power last week after massive protests erupted in Quito against alleged corruption in his administration and his recent firing of the Supreme Court. Ecuador’s new government, led by former Vice-President Alfredo Palacio, has granted Gutierrez permission to leave the country.
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Mexico: Rates Held Steady
Banco de Mexico today left the amount commercial banks must borrow overnight at higher rates unchanged at $7.2 million daily. The central bank’s board said Friday that the pace of annual growth in consumer prices slowed to 4.4 percent in March from 5.4 percent in November. Core inflation, which excludes energy and food prices, slowed to 3.6 percent from 3.8 percent.
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Brazil Raises Rate
Brazil’s central bank unexpectedly raised its benchmark lending rate for an eighth straight month in a bid to rein in inflation. Central bankers voted unanimously to lift the overnight interbank rate 25 basis points to 19.5 percent. Retail sales rose at their slowest pace in 15 months in February and industrial output grew at its weakest pace in four, evidence the expansion in South America’s biggest economy is decelerating. But consumer prices rose 7.5 percent in the 12 months through March, above the central bank’s 5.1 percent year-end target.
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Bush Pushes CAFTA
US President George W. Bush urged congress to approve a free trade agreement with Central America (known as CAFTA) to help bolster US exports. Central America is the US’s 13th-largest export market, bigger than Russia, India and Indonesia combined, and the US is the biggest buyer of Central American products. Goods worth about $33 billion are expected to be traded between the US and Central America this year.
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Chile’s Trade Surplus Higher
Chile’s trade surplus stood at $6.1 billion, up 31 percent year-on-year. The leading exports were copper, fresh fruits, cellulose and salmon. Chilean exports to Asia grew 46 percent, exports to the Americas increased 26 percent and sales to Europe rose 16 percent.
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Embratel May Up Investments
Brazil’s long-distance phone carrier Embratel may invest more than the $540 million initially planned for this year. CEO Carlos Henrique Moreira said that further investments will depend on the success of a capital increase of up to $700 million being carried out by Mexican parent company Telmex. Embratel’s capital increase is slated to be completed on April 27.
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Entel’s Profit Rises
Entel, Chile’s second largest telecoms group, posted a net profit of $33 million for the first quarter, up 31 percent year-on-year. The company’s revenue grew to $313 million, up 4.0 percent. In 2004, Entel posted a net profit of $82 million, down 23 percent, due to the underperformance of its foreign subsidiaries. The company operates in Chile, Peru, Venezuela, Central America and the US.
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Gutierrez Ousted
Ecuador’s President Lucio Gutierrez was ousted by Congress Wednesday, the third leader to be removed since 1997, amid allegations he stacked the Supreme Court with allies and helped clear an ex-president of corruption charges. Lawmakers voted 60 to 2 to replace Gutierrez, then swore in Vice President Alfredo Palacio as president. Gutierrez was arrested at the Quito airport and held at a military base. The political tumult pushed down Ecuador’s bond due 2012 to a seventh-month low, and spurred declines in debt sold by neighboring Peru and Colombia.