Lula Calls on Petrobras to Reinvest Profits; Peru’s Growth Outpaces Forecasts

A roundup of Tuesday’s news from across Latin America

Bloomberg Línea
March 16, 2022 | 12:55 AM

Bloomberg Línea — Brazil’s former President Luiz Inácio Lula da Silva, who is ahead in the polls in the run-up to the October election, said Tuesday that part of state oil company Petrobras’ (PETR3, PETR4) profits should be reinvested in the construction of new refineries and research. “[In 2021] Petrobras’ profit was 106 billion reais ($20.5 billion), half of this money should be applied to building new refineries and research for Petrobras to continue growing, however, dividends were distributed among shareholders and the people were left sucking their thumbs”, Lula said in an interview with radio station Espinharas.

Peru’s economy grew 2.86% in January, above expectations, driven by the hospitality sector, as well as logistics and courier services. However, the continued weakening of governance in the country is a risk that Fitch Ratings perceives as latent for the Peruvian economy, and in particular for the agency’s sovereign ratings.

On the region’s stock markets, Chile’s Ipsa (IPSA) index had the best performance in Latin America, closing the day with an increase of 0.75%, and Mexico’s stock market was the second-best performer, with the S&P BMV/IPC (MEXBOL) up 0.38% at closing.

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Following is a roundup of Tuesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.

Argentina:

Brazil:

  • Leading in the polls in the run-up to the October election, former President Luiz Inácio Lula da Silva said Tuesday that part of state oil company Petrobras’ (PETR3, PETR4) profits should be reinvested in the construction of new refineries and research. “[In 2021] Petrobras’ profit was 106 billion reais ($20.5 billion), half of this money should be applied to building new refineries and research for Petrobras to continue growing, however, dividends were distributed among shareholders and the people were left sucking their thumbs”, Lula said in an interview with radio station Espinharas.

Read More: Lula’s Criticism of Petrobras Echoes 2002 Campaign

Chile:

Colombia:

Ecuador:

El Salvador:

Mexico:

Panama:

Peru: