Bloomberg Línea — Antofagasta, the Chilean copper producer most exposed to regulatory risk in the country, hopes that the industry will not be affected by some of the more radical measures being debated by the citizens charged with drafting a new Constitution. The newly installed government of President Gabriel Boric wants to move forward on increasing taxes on mining, which could take the form of a broad tax reform, Mining Minister Marcela Hernando said at the World Copper Conference.
Ecuador’s plan to increase oil production by at least 100,000 barrels per day this year to a total 495,000 barrels per day remains in place, and the government has several strategies in its sights, one of which is to reopen 1,000 oil wells, beginning with at least 200 in a first phase.
On the region’s stock markets, Brazil’s Ibovespa (IBOV) had the best performance, buoyed by the optimism generated by the Russia-Ukraine talks, closing up 1.07%, following the rise of Petrobras (PETR3; PETR4) shares, after the government has announced on Monday the departure of the company’s chairman, Joaquim Silva e Luna and appointed Adriano Pires, founding partner and director of the Brazilian Infrastructure Center.
Following is a roundup of Tuesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.
- Economist Eduardo Levy Yeyati projected a rise in the Consumer Price Index of between “60% and 70%” for this year, assuring that “the only thing left for the government to do to comply with the fiscal goals agreed with the IMF “is to liquidate spending through inflationary acceleration”, he said in an interview with Bloomberg Línea.
- The government of the province of Neuquén agreed with Transportadora de Gas del Sur (TGS) on the expansion of the Vaca Muerta gas pipeline in order to boost production in the area and guarantee both supply and export.
- President Jair Bolsonaro’s choice of a business-friendly oil consultant to lead state oil company Petroleo Brasileiro (Petrobras) comes as a relief to investors, who are concerned about fuel subsidies after Russia’s invasion of Ukraine sent prices soaring. Adriano Pires, a 30-year industry veteran who serves as a director at the Brazilian Center for Infrastructure, has defended Petrobras’s ability to set its own prices in recent op-eds and has described previous price fixing as populist. He has suggested a fund that would allow the government to temporarily subsidize fuel costs to accommodate shocks, without Petrobras having to pay for it.
- Antofagasta, the Chilean copper producer most exposed to regulatory risk in the country, hopes that the industry will not be affected by some of the more radical measures being debated by the citizens charged with drafting a new Constitution. The newly installed government of President Gabriel Boric wants to move forward on increasing taxes on mining, which could take the form of a broad tax reform, Mining Minister Marcela Hernando said at the World Copper Conference.
- The recovery of airline Avianca continues, after having been severely affected by the pandemic. The carrier is planning 27 new routes and the purchase of 88 aircraft, in a plan that does not contemplate the need for new loans.
- Costa Rica will allow tourists to enter the country with fewer restrictions due to the Covid-19 pandemic as of April 1. Travelers will be able to enter without carrying a health pass and unvaccinated foreigners will not have to pay for medical insurance with Covid coverage. And, although the use of face masks will continue to be mandatory, the government hopes that with these measures will accelerate the tourism industry’s revival.
- The country’s tax collection recorded a year-on-year variation of 40.6% in 2021, with respect to 2020, and represented an execution of 101.3% with respect to what was budgeted. Overall, the state’s revenues are equivalent to 15.6% of the gross domestic product (GDP) estimated for that year.
- The government’s aim to increase oil production by at least 100,000 barrels per day this year to a total 495,000 barrels per day remains in place, and Ecuador has several strategies in its sights, one of which is to reopen 1,000 oil wells, beginning with at least 200 in a first phase.
- Following outbreaks of violence in El Salvador, the country’s President Nayib Bukele responded to accusations from various international organizations regarding alleged human rights violations, after the country suspended constitutional rights in a bid to restore order, with an invitation for the foreigners criticizing his government to remove the gangs from the country.
- Good fiscal management, macroeconomic stability, the country’s geographical position, and a stable and solid financial sector are aspects that Guatemala should take advantage of to generate more confidence in its public institutions and eliminate bottlenecks that are causing social setbacks, according to Mauricio Claver-Carone, president of the Inter-American Development Bank (IDB), who spoke during a press conference attended by Bloomberg Línea.
- Daniel Becker, president of the Mexican Banking Association (ABM) and of Grupo Financiero Mifel, is seeking to buy Banamex, and will look to form a group of shareholders to that end, Jesús de la Fuente, president of Mexico’s Banking and Stock Exchange Commission (CNBV), told Bloomberg Línea.
- Private oil companies operating in the country acknowledge that there is a gap between the approved and exercised investments they have carried out, but claim that it is not non-compliance with their contracts, according to the business group that represents them in the country.
- Faced with the constant rise in fuel prices, Panamanian transportation companies are not backing down and insist that the government freeze the prices of diesel and gasoline at $2.40 and $3.00, respectively, threatening to paralyze public transportation if their demands are not met.
- With 55 votes in favor, 54 against and 19 abstentions, the impeachment motion presented in Congress against President Pedro Castillo on the grounds of moral incapacity failed, with 87 votes in favor needed to remove the president from office. The impeachment vote was the second that Castillo has faced during his eight months in office.
- Analysts and financial players in the Uruguayan market confirmed their upward revision of inflation expectations both for the end of the year and in the forecast for 24 months from now, according to the latest survey released on Tuesday by the Central Bank of Uruguay (BCU). The average forecast for inflation by the end of this year is 7.9%.