|
Brazilian and Latin American shares moved solidly higher alongside strength in U.S. markets. The Federal Reserve's Beige Book indicated the economy continued to advance in June and early July in most U.S. regions.
Also, June's durable goods orders and new home sales were surprisingly strong. Brazil continued to recoup recent losses, as there were no further revelations related to the country's political scandal. Mexican and Argentine shares also posted solid gains.
Brazil's benchmark Bovespa Index rallied 469.35 points, or 1.89%, while Mexico's benchmark Bolsa Index jumped 105.65 points, or 0.75%. Argentina's Merval Index surged 23.28 points, or 1.57%.
Brazilian shares continued to power higher, as the lack of new revelations regarding the country's alleged cash-for-votes scandal allowed investors to relax.
The Brazilian Steel Institute, or IBS, said that steel output declined by 1.2% during the first half of the year, compared to the corresponding period a year ago.
High local interest rates and the appreciation of the Brazilian real against the U.S. dollar were cited for the decline.
Separately, São Paulo's Fipe research institute reported that its consumer price index increased 0.17% in the four weeks ended July 23, compared with steady prices recorded in the four weeks ended July 15.
In corporate reports, Banco Bradesco, Brazil's largest private bank, signed a partnership with retailer Lojas Leader to provide consumer credit services to its customers.
Meanwhile, the Brazilian Anti-Trust Commission approved an agreement between France's Casino Guichard Perrachon & Cie and Brazilian supermarket chain CBD, which will raise the French firm's stake in CBD to 34.3% from 27.4%. Under the agreement, the stake will eventually rise to 39%.
Mexican shares returned to positive territory, following a decline yesterday. Stocks received support from U.S. shares, which benefited from some upbeat economic indicators.
Meanwhile, the Bank of Mexico reduced its gross domestic product estimate for 2005 to 3.25% to 3.75% from its prior range of 3.5% to 4%. Among the reasons for the lower outlook was a slowdown in external demand.
In earnings headlines, fixed-line phone operator Telmex posted a net profit of 6.53 billion pesos, up from 4.59 billion pesos a year ago.
Sales jumped 26.7% to 40.17 billion pesos, boosted by the inclusion of results from Brazil's Embratel Participações. EBITDA rose 7.9% to 16.98 billion pesos.
Airline holding company Cintra posted a narrower second-quarter loss of 295.6 million pesos, compared with 490.5 million pesos a year ago.
Operating profit reached 80.1 million pesos, reversing a year-earlier loss of 64.8 million pesos. Sales advanced 7% to 9.27 billion pesos.
Meanwhile, Grupo Bimbo SA said that its second-quarter net income leapt 34% to 605.6 million pesos from 453.3 million pesos a year ago. The company credited higher sales and lower financing costs for the quarterly boost.
Sales jumped to 13.31 billion from 12.58 billion a year earlier, while operating profit surged to 1.16 billion from 875.9 million.
In research, a major investment firm cut retailer Soriana's rating to "neutral" from "buy" following the firm's disappointing second-quarter results posted last night.
Argentine stocks continued to post solid gains, despite a dearth of economic or corporate news. In corporate news, a Buenos Aires judge levied a general embargo of more than 150 million Argentine pesos on Carrefour Argentina for unpaid taxes.
Elsewhere, Spain's Telefonica Moviles posted a 4.5% rise in its second-quarter net profit to 496 million euros, up from 474 million euros a year ago, aided by revenue growth in Spain and Brazil and a decline in its tax bill.
Thomson Financial Corporate Group - www.thomsonfinancial.com
 |
Subscribe to this comment's feed
Brazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention. 
The only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes. 
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.