Bloomberg Línea — Latin American e-commerce retailer MercadoLibre (MELI) will invest around $3.4 billion in Brazil this year, 70% more than in 2021, the company said in a statement. The company seeks to expand MercadoPago’s product offering and continue strengthening its logistics capacity with four new distribution centers.
Ecuador’s state-owned power company CELEC has unilaterally terminated a construction contract for works on the Toachi Pilatón hydroelectric project, signed on December 24, 2010, with China International Water & Electric Corp (CWE). The Ecuadorian company declared CWE as the “defaulting contractor” on the Sarapullo and Alluriquín power plants, which have a total power generation capacity of 254.4MW.
Of the region’s stock markets, Colombia’s had the best performance on Tuesday, with the Colcap index up 1.05%, while Brazil’s Ibovespa (IBOV) had the second best performance of the day and closed with an increase of 0.96%. The Mexican stock market also added to the optimism, with the S&P BMV/IPC (MEXBOL) up 0.46% at closing, while Chile’s IPSA index (IPSA) closed with a drop of 2.13% after Monday’s fifth consecutive session with gains and its second best day of the year.
Following is a roundup of Tuesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
Argentina:
- During the last two days, the Domestic Trade Ministry held a series of meetings with the United Supermarkets Association and the main companies producing mass consumer goods, and which have agreed to return prices to March 10 levels as prices of foods and other goods have skyrocketed in recent weeks.
- Tension within the Argentine government continues. President Alberto Fernández said Tuesday that “I am the one who makes the decisions in Argentina. That is so. I value everyone. But I say how the Government works. There is no collegiate presidency”. His comments follow disagreements within the government concerning the latest deal with the IMF to restructure the country’s $44 billion debt.
- In an interview with Bloomberg Línea, Esteban Gutiérrez, CEO of PedidosYa, said that his goal is a monthly order per inhabitant of the 15 countries in which the delivery company operates by 2024.
- Argentine fintech Alprestamo raised $2.5 million and is expanding into new markets, including Mexico and Colombia.
Brazil:
- Latin American e-commerce retailer Mercado Libre will invest around $3.4 billion in Brazil this year, 70% more than in 2021, the company said in a statement. The company seeks to expand MercadoPago’s product offering and continue strengthening its logistics capacity with four new distribution centers.
- The Entrepreneurial Cities Index of the National School of Public Administration (Enap), with the support of Endeavor, places the city of São Paulo in top position as the best city for entrepreneurship.
Colombia:
Ecuador:
- Ecuador’s state-owned power company CELEC has unilaterally terminated a construction contract for works on the Toachi Pilatón hydroelectric project, signed on December 24, 2010, with China International Water & Electric Corp (CWE). The Ecuadorian company declared CWE as the “defaulting contractor” on the Sarapullo and Alluriquín power plants, which have a total power generation capacity of 254.4MW.
El Salvador:
- The crypto world is still waiting for El Salvador’s ‘volcano bond’, a cryptocurrency bond that is to be traded through the exchange Bitfinex, which is waiting for the digital securities law to be passed to apply for an operating license.
Guatemala:
- Coca-Cola Femsa Guatemala will invest $184,000 in a new distribution center in the country. The company will expand infrastructure and storage for the areas of Antigua Guatemala, San Lucas Sacatepéquez, and Chimaltenango, a region that accounts for 12% of its sales in Guatemala.
Mexico:
- Grupo Financiero Banorte has a plan for the purchase of Banamex, Citi’s consumer banking unit. The financial institution, if it confirms interest, would seek to invite citizens, families and entrepreneurs to join as individual investors, once the conditions to initiate the operation are made known.
- Mexico’s central bank will raise interest rates by 275 basis points over the next 12 months, leaning towards the more aggressive side to minimize long-term risks, according to JPMorgan.
Panama:
- Affected by the pandemic, the Panamanian economy is seeking to aid recovery by resuming its traditional trade fairs: Expocomer, Expo Logística Panamá and Expo Turismo Internacional, organized by the Chamber of Commerce, Industries and Agriculture of Panama.
Peru:
- The bonds of Peru’s state-owned oil company Petroperú have been embroiled in a power struggle between the company and the government, which has delayed a critical audit and led to the resignation of the company’s CEO, causing its shares to plummet.
Venezuela:
- Diosdado Cabello, vice president of Venezuela’s ruling Socialist Party and a key figure in the government of President Nicolás Maduro, said in statements to the media that the country should carry out a military invasion of Colombia, likening such an operation to the Russian invasion of Ukraine.
