Bloomberg Línea — The pandemic proved to be a turning point for Brazil’s wine industry and for demand, with domestic production increasing by 60% in 2021 compared with the previous year, while consumption of wine in 2020 hit a 20-year high, with a 21.9% increase over 2019 levels, according to the annual report of the International Organisation of Vine and Wine.
The board of directors of Banco de la República de Colombia took the decision to raise its interest rates by 100 basis points to 6% on Friday, in line with expectations by financial markets. However, unlike the two most recent hikes, three members of the board voted for a more aggressive adjustment of 150 basis points. Total inflation increased in March from 8.01% to 8.53%, while inflation without food and regulated products increased from 4.11% to 4.51%. The central bank said inflation expectations for 2022 are around 7%.
On the region’s main stock markets, Peru’s (SPBLPGPT) was the only one in Latin America to close with gains on Friday. On a monthly basis, Mexico’s S&P BMV/IPC (MEXBOL) accumulated a decline of more than 9%, while Brazil’s Ibovespa (IBOV) accumulated a monthly drop of more than 10%.
Following is a roundup of Friday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Marcos Galperin, CEO and co-founder of MercadoLibre (MELI), said this week that “people are tired of the rules being changed” in Argentina. In statements to the Financial Times, he also lamented that “many entrepreneurs have left the country, and that for me is the saddest thing about what is happening in Argentina”.
Brazil:
- The pandemic proved to be a turning point for Brazil’s wine industry and market, with domestic production increasing by 60% in 2021 compared with the previous year, while consumption of wine in 2020 hit a 20-year high, with a 21.9% increase over 2019 levels, according to the annual report of the International Organisation of Vine and Wine.
Chile:
- Chile’s Minister of Mining, Marcela Hernando, said that one of the great challenges facing state-owned copper producer Codelco is to accelerate its progress in sustainability. “For example, to maximize the capacity to recirculate the waste produced in its divisions,” she said on Friday at the company’s shareholders’ meeting.
Colombia:
- The board of directors of Banco de la República de Colombia took the decision to raise its interest rates by 100 basis points to 6% on Friday, in line with market expectations. However, unlike the two most recent hikes, three members of the board voted for a more aggressive adjustment of 150 basis points. Total inflation increased in March from 8.01% to 8.53%, while inflation without food and regulated products increased from 4.11% to 4.51%. The central bank said inflation expectations for 2022 are around 7%.
- Airlines Avianca and Viva airlines announced that they will unite under a single holding company, unifying economic rights and bringing together two main carriers in the region’s commercial aviation sector.
Ecuador:
- Ecuador has made a sale of 3.24 million barrels of Oriente crude oil to Trafigur, the country’s fourth spot sale so far this year, with a view to revaluing the price of Ecuadorian oil on the international market. Oriente crude is of better quality, and its price is relatively higher, while the Napo variety is less abundant and heavier.
El Salvador:
Guatemala:
- The price of diesel is close to catching up with gasoline prices in Guatemala, a phenomenon that has caused concern among consumers and, in particular, transportation companies, whose vehicles predominantly use the fue.
Mexico:
- The CEO of Citibanamex, Manuel Romo, said that the process of selling Citi’s retail business in Mexico, Banco Nacional de México (Banamex), is progressing on schedule, and that it has generated interest among potential buyers. However, he said that from now on there will be confidentiality regarding the names of those interested in the acquisition of the business.
- Mexico’s GDP returned to growth in the first three months of the year after stalling in the last half of 2021, expanding slightly less than expected amid solid U.S. demand for manufactured goods.
Honduras:
- Honduras has implemented a satellite monitoring project to prevent the Fusarium virus in bananas. Following reports of the fungus in Colombia and Peru, countries in the region have stepped up preventive measures, supported by state-of-the-art technology offered by Taiwan.
Panama:
- The informal sector in Panama grew at a dizzying rate over the last couple of years as a result of the reduction in personnel resulting from the Covid-19 pandemic, most severely affecting the indigenous regions, where informality stands at 85%, according to employment figures from Caja de Seguro Social .
Peru:
- Fitch Ratings on Friday affirmed Peru’s long-term foreign and local currency issuer default ratings at ‘BBB’, with a stable rating outlook, and which the ratings agency says is supported by the country’s position as an external creditor, its macroeconomic policy track record and a fiscal framework in which moderate public debt stands out.
Uruguay:
- Montevideo has become the kick-off location for English soccer club Manchester City’s owners to enter South America. The City Football Group is developing a project in Uruguay through a team that seeks to position itself as a breeding ground for local players.
