Bloomberg Línea — Brazil’s President Jair Bolsonaro has begun a visit to Russia that, despite the bad timing, may bring benefits to the image of the Brazilian government on the international stage.
Avocados could become even more expensive as the United States has temporarily suspended imports from the world’s largest producing region in Mexico, Michoacán, following threats made against U.S personnel in the region who carry out quality control testing on the fruit.
On the region’s stock markets, Brazil’s Ibovespa (IBOV), the leading index of the largest stock market by market capitalization in Latin America, was the only one in the region to close with gains after registering a slight rise of 0.29%.
Consumer stocks boosted the index on Monday, with shares of xompanies such as Magazine Luiza (MGLU3); Americanas (AMER3) and Petz (PETZ3), while the IT and industrial sectors also performed positively during the day.
Following is a roundup of Monday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- We look at the Argentine startups that could join the $1 billion unicorn club this year.
- According to a report by Red Link, the growth of new businesses shows a “rapid maturing of the acceptance of new technologies” in the country, including the use of electronic money.
- With a focus on the acceleration of inflation, Argentine labor unions have opened discussions for 2022, in a context marked by the negotiations with the International Monetary Fund (IMF). The unions insist on the need to beat inflation, in the midst of an economic scenario that so far has achieved a heterogeneous recovery.
Brazil:
- President Jair Bolsonaro has begun a visit to Russia that, despite the bad timing, may bring benefits to the image of the Brazilian government on the international stage.
- Mining giant Vale has dropped its $1.2 billion court battle against Beny Steinmetz and five people linked to his company in London after less than half of the estimated 11-week trial over alleged bribery, according to Bloomberg.
Chile:
- Chile’s Constitutional Convention, which has been debating radical ideas such as the nationalization of mining, took a step back last week on one of its most extreme proposals: allowing the government to expropriate private property for social improvement.
- Only 47% of Chileans would approve the new Constitution in a national referendum scheduled for the second half of the year, according to a Cadem poll released Sunday night.
Colombia:
- A financial opinion survey carried out in Colombia indicates that socio-political conditions were the most relevant aspect at the time of investing, with 58.33% of analysts considering it the most important factor, while last month it was 40.5%. According to the same report, 27% of analysts believe that the Central Bank will call an extraordinary session to decide on interest rates in February.
- President Iván Duque announced that the Colombian economy grew by more than 10.2% last year.
Costa Rica:
- Costa Rica’s monthly economic activity index (IMAE) for December showed an increase in national production of 9.8% compared to December 2020, driven mainly by the manufacturing industry, the recovery of hotels and restaurants, and by professional activities and transportation and storage.
- The commercial alliance between Unilever and La Maquila Lama will allow Costa Ricans to have access to a new line of Lizano, Natura’s and Maizena products.
- Taco Bell announced that for the first time in the region it will introduce Coca-Cola’s beverage portfolio into the country’s fast food restaurants.
Ecuador:
- In an interview with Bloomberg Línea, Fernando Díaz, Citi’s economist for Ecuador and the Southern Cone, talks about the country’s growth forecasts for this year, which are quite modest and lower than those expected by the Central Bank (2.54%).
- These are the products most ordered by Ecuadorians on Valentine’s Day.
El Salvador:
- Vaccines from China and the United States have been the most widely applied in El Salvador to combat the Covd-19 pandemic, according to research by Fundaungo.
- El Salvador is awaiting approval to join the Development Bank of Latin America (CAF) on March 8, during the General Assembly of Shareholders meeting in Asuncion, Paraguay.
Mexico:
- Avocados could become even more expensive as the United States temporarily has suspended imports from the world’s largest producing region in Mexico, Michoacán, following threats made against U.S personnel in the region who carry out quality control testing on the fruit.
- Multinational companies have threatened to leave Mexico if the country does not meet its renewable energy goals, warned AlbertoDe la Fuente, president of the Executive Council of Global Enterprises (CEEG), and who is also president of oil company Shell in Mexico, during his participation in a forum.
- Inflation in Mexico is at its highest level in the last two decades, and the 22% increase in the minimum wage for 2022 are putting a strain on wage reviews between companies and unions in Mexico.