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Bloomberg Línea — Gas prices in Argentina will rise by 15% for SMEs and 20% for residential users on average this year, as the administration of President Alberto Fernández moves forward with the update of tariffs.
Chile’s incoming Finance Minister Mario Marcel has pledged to reduce economic uncertainty and seek to control debt levels as he prepares to take the reins of the economy as part of the new administration of President-elect Gabriel Boric, who takes office on March 11.
On the stock markets, Colombia’s main index Colcap was the leader among its Latin American peers, closing with a 1.19% hike. The market benefited from the performance of the financial sector. Bancolombia (BCOLO) shares led the day, after the entity reported its annual results for 2021 on Tuesday afternoon and announced an increase in the dividends it will deliver to its shareholders.
Mexico’s stock market was the worst performer in Latin America on Wednesday, and its main index, the S&P BMV/IPC (MEXBOL) closed with a drop of 2.35%.
Following is a roundup of Wednesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Gas prices will rise by 15% for SMEs and 20% for residential users on average this year, as the administration of President Alberto Fernández moves forward with the update of tariffs.
- Argentina’s monthly economic activity estimate was up by 0.9% in December by 0.9% compared to the previous month, and 9.8% in relation to the same month of 2020, while for the 12 months of last year the growth was 10.3%, according to the country’s statistics bureau INDEC.
Brazil:
- A $200 million loan for Marfrig Global Foods (MRFG3) has fallen apart amid growing concern that Brazil’s second-biggest beef producer is fueling deforestation in the Amazon. The Inter-American Development Bank’s private-sector arm shelved a plan to lead the syndicated loan after a series of setbacks. First, a vote on the financing was pushed from December to May, according to two people familiar with the matter. The bank couldn’t agree with the company on environmental targets, as well as the financial terms of the loan, said one of the people. Now, the loan is inactive, according to IDB’s website, and will no longer go up for a vote.
Chile:
- Chile’s incoming Finance Minister Mario Marcel has pledged to reduce economic uncertainty and seek to control debt levels as he prepares to take the reins of the economy next month as part of the new administration of President-elect Gabriel Boric.
Colombia:
- The Board of Directors of Grupo de Inversiones Suramericana has decided that it will not sell, despite the fact that the Gilinski Group’s second offer for Grupo Nutresa is 35% higher than the first one.
- The Colombian government has announced that in municipalities where vaccination is more than 70% advanced, it will no longer be necessary to use masks.
- Colombian foodtech companies set the tone in terms of investment and it is estimated that they have so far received investments of $185.4 million.
Dominican Republic:
- The luxury car market in the Dominican Republic is growing. Alfa Romeo, Aston Martin, Rover, Bentley, Ferrari, Lamborghini, Land Rover, Rolls Royce, McLaren, are just some of the ostentatious brands that circulate on Dominican streets.
Ecuador:
- With 85 votes in favor, Ecuador’s Congress censured and dismissed the Superintendent of Banks, Ruth Arregui, on the grounds that she failed to comply with the functions assigned by the Constitution.
- Ecuadorian bonds in dollars have had a yield of 6.4% this year, compared to an average loss of 4.2% for emerging markets.
El Salvador:
- Default rates caused by the Covid-19 pandemic have already passed their worst moment and will tend to stabilize if no new risks materialize, according to Fitch Ratings’ analysis of El Salvador’s banking sector’s performance in 2021.
Mexico:
- State-owned utility Comisión Federal de Electricidad (CFE) has taken over the industrial partners to which the Spanish giant Iberdrola supplied electric energy in the state of Nuevo León.
- Shares of Grupo Aeroportuario del Pacífico (GAPB), the Mexican administrator of 12 airports in the country and two in Jamaica, fell after analysts downgraded their recommendation after releasing its results for the fourth quarter of 2021.
- Nubank revealed it paid $3 million for Mexico’s Akala, after it showed that it ended 2021 with 1.4 million clients in Mexico.
Uruguay:
- Moderna Inc. (MRNA) has signed a deal with a Uruguayan pharmaceutical company in a bid to expand its reach across Latin America. The Covid-19 vaccine maker announced the distribution deal Tuesday with Adium Pharma SA to market the shots in 18 countries in the region including Brazil and Mexico. The shots will be supplied from Moderna’s plants in the U.S. and Europe, said Roman Saglio, head of commercial alliances for Latin America.
Venezuela:
- Venezuela’s opposition has more supporters than the government, but its internal divisions prevent it from winning elections, according to a poll by the Delphos consulting firm. The ruling party and its allies benefit from a mobilized electorate, but as a whole, it has less support than the opposition, according to the poll released on Wednesday.
