Bloomberg Línea — For the seventh consecutive week, Brazil’s central bank has raised its inflation forecasts for this year, from 5.56% to 5.60%, and Mexico and South Korea have agreed to resume negotiations toward a free trade agreement in the first half of 2022.
On the region’s stock markets, Argentina’s Merval (MERVAL) had the best performance among the main Latin American indexes, up 2.59%, with shares such as those of Pampa Energía (PAMP), YPF (YPFD) and Cresud (CRES) among the session’s best performers.
Brazil’s Ibovespa (IBOV) also returned in good spirits after the break for Carnival, closing with gains following the performance of the U.S. markets, while Mexico’s S&P BMV/IPC (MEXBOL) also ended the session with gains.
Following is a roundup of Wednesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- Cryptocurrency mining is booming in Argentina due to the country’s characteristics and energy prices, and Bloomberg Línea has calculated what it is like to mine cryptocurrencies in the country and how much money is needed.
- March began with new price increases that will put more pressure on inflation, whose floor is estimated at 50% for this year.
Brazil:
- For the seventh consecutive week, Brazil’s central bank has raised Brazil’s inflation forecasts for this year, from 5.56% to 5.60% per annum.
- U.S. company Fortis announced the purchase of Oktagon Games, with the value of the deal not disclosed, but the acquisition is part of the strategy of the group formed by former executives of gaming giants such as Zynga, WB Games and Plexchat, to develop game-as-a-service models, using the mechanics of social networks.
- In the first week of March, the country’s retail giants will publish their fourth quarter 2021 financial results.
Chile:
- The Constitutional Convention, charged with drawing up a new constitution, is moving forward with a proposal that is stirring political tempers: the elimination of the Senate. The Convention’s Political System Commission approved the idea of creating a “territorial Chamber” to replace the Senate.
- Chile is to sell bonds linked to its sustainability goals, becoming the first nation in the world to do so.
- Foodtech unicorn NotCo’s CEO, Matías Muchnick, talked to Bloomberg Línea about the company’s upcoming projects and actions, and advises startups to focus on creating a successful business, rather than achieving unicorn status.
Colombia:
- Colombian app Trii and Kallpa SAB have forged an alliance to launch operations in Peru from March 3.
- Low inventories are already affecting the new car market in Colombia, with sales having fallen in February.
Dominican Republic:
- Ukrainian tourists who visited the Dominican Republic in mid-February did not imagine that their vacation would end in calamity, and that they would not be able to return to their country. After six days of Russian attacks on Ukraine, approximately 1,284 Ukrainian citizens are stranded in the Dominican Republic and are without accommodation, with the government now having guaranteed them accommodation.
Ecuador:
- The government announced that a mission from the International Monetary Fund (IMF) will on Friday begin the fourth review of the extended service facility program it has maintained with Ecuador since September 2020.
- Uber’s manager in Ecuador, Spencer Friedman, spoke exclusively to Bloomberg Línea about the future of the brand in the country and why it is an important market for the company.
El Salvador:
Guatemala:
- President Alejandro Giammattei has vetoed the vaccine law approved by Congress in February, because “it contradicts itself and generates a lack of legal certainty”.
Mexico:
- Mexico and South Korea have agreed to resume negotiations toward a bilateral free trade agreement in the first half of 2022.
- The Bank of Mexico cut its growth forecast for the country to 2.4% from a previous 3.2% on Wednesday. In the October-December 2021 Quarterly Report, the central bank indicated that for 2022, GDP growth is expected to be between 1.6% and 3.2%.
- Mexico has agreed to maintain the oil production quota with OPEC+ for April.
Peru:
- The political panorama in Peru remains stormy and the seven months of President Pedro Castillo’s government have been marked by instability, with the president having recently installed his fourth cabinet since taking office last July, while on February 28 Transport Minister Juan Silva resigned. But the portfolio that has suffered the most political upheavals has been the Ministry of Health, with seven ministers having been in charge since the beginning of the Covid-19 pandemic.
