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Reuters: [2008-05-07 00:01:00]
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> Emergency evacuation as Chile volcano spews lava [nN06461855]
> Argentine farmers say govt may change export taxes [nN06475948]
> Colombia to convert foreign debt into pesos [nN06477565]
> Brazil sends police after Indians shot over land [nN06498814]
> China, Venezuela to ink oil, refinery deal [nSHA140453]
> Colombian Congress weakened by paramilitary scandal[nN06493694]
> Pemex head says Mexico will meet 3 mln bpd target [nN06528986]
> America Movil to pay Ecuador $480 mln to operate [nN06478021]
> Subcontractors start resuming Codelco operations [nN06455759]
> Border coffee roaster helps keep migrants in Mexico[nN06482102]
> Brazil's Itau profit rises on strong loan growth [nN06364869]
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> Nascent Ecuador mining sector to survive freeze [nN22349374]
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Keywords: *TOP NEWS* Latin America
US business presses India for more WTO concessions
Reuters: [2008-05-06 23:04:00]
By Doug Palmer
WASHINGTON, May 6 (Reuters) - U.S. business groups said they hoped a meeting of top trade officials from the United States and India this week would help advance world trade talks but criticized India's role in negotiations so far.
U.S. Trade Representative Susan Schwab and India Commerce and Industry Minister Kamal Nath meet in New York on Thursday at a key point in the Doha round of world trade talks, which is now in its seventh year.
Many countries fear the round will slip into the deep freeze if a final agreement is not signed by the time the next U.S. president takes office in January 2009.
Speaking in advance of the India talks, Frank Vargo, vice president for international economic affairs at the National Association of Manufacturers, criticized New Delhi, saying: "They talk the talk, but they don't walk the walk."
"In other words, they say good things, that they want this to work ... but when it comes to actually putting any positive proposals on the table, they don't," Vargo said.
India's Nath has pressed the United States to slash its domestic farm subsidies but has also insisted on conditions that would let developing countries shield a large number of sensitive agricultural sectors from deep tariff cuts.
Vargo said India, as a leader of the so-called NAMA 11 negotiating bloc, was resisting demands for advanced developing countries to open their markets to more foreign manufactured goods.
Bob Vastine, president of the Coalition of Service Industries, which represents sectors ranging from banking to telecommunications to express delivery, said he was also frustrated with India's position.
"India is one of the two key countries that haven't really participated (in the services negotiations). China and India are perhaps the two most important countries from whom we need offers on services," Vastine said.
Some U.S. business groups concede it is reasonable for developing countries to expect the United States to make deep cuts in farm subsidies and to reduce tariffs in politically sensitive areas like textiles and light trucks as part of a Doha deal.
But they say that unless the agreement also gives U.S. manufacturers, farm groups and service providers new export opportunities in major developing countries like India, it would be very hard to win approval in Congress.
One reason India often gives for not offering more in the services talks is political opposition in the U.S. Congress to one of New Delhi's key demands -- more temporary entry visas for its information technology and other service providers to work in the United States.
Other WTO members such as the European Union, Australia and Canada have made good offers to India on that issue, while the United States is "stuck because of our Congress," Vastine said.
He added that without a meaningful market opening offer from New Delhi, U.S. negotiators have no incentive to make a politically sensitive concession for India.
Earlier on Tuesday, European Trade Commissioner Peter Mandelson warned time could be running out for the Doha round, which aims to open markets around the world to more trade in agriculture, manufactured goods and services.
"There may not be a later for this deal. It's got to be now," Mandelson told reporters, stressing the need for negotiators in Geneva to produce new compromise texts in agricultural and manufacturing by the end of next week.
(Editing by David Storey and Cynthia Osterman) ((doug.palmer@reuters.com; +1 202 898 8341; Reuters Messaging: doug.palmer.reuters.com@reuters.net)) Keywords: USA INDIA/DOHA
Emerging debt-Colombia spreads tighten on currency operations
Reuters: [2008-05-06 23:02:00]
By Manuela Badawy
NEW YORK, May 6 (Reuters) - Colombia's yield spreads narrowed sharply on Tuesday after the government announced it will convert up to $20 billion in foreign currency into peso debt, in a plan to lock in the local currency's strength and reduce its exposure to foreign currency debt.
Colombia's government debt yield spreads, the premium that investors demand for holding riskier security than U.S. Treasuries, narrowed 10 basis points to 173 bps on the news, according to JP Morgan's Emerging Markets Bond Index Plus (EMBI+) <11EMJ><.JPMEMBIPLUS>.
Spreads, an important gauge of investors' aversion to risk, tightened to levels last touched in mid-December.
The government said the objective of this series of hedge-type operations "is to take advantage of the current exchange rate." The first in the series will involve $2 billion in multilateral debt. For more information see [nN06477565]
The peso <COP=RR> weakened 1.26 percent against the dollar to 1,777.9 after the announcement. In the last 12 months the peso has gained 15 percent against the U.S. dollar and is at its strongest level in nine years.
Gianfranco Bertozzi, vice president of emerging markets research at Lehman Brothers, said the purpose of the operations is to capture the peso's strength and thus improve its liability profile.
"It would set in motion a dynamic that might weaken the peso, which (the government) would not mind seeing, given the deleterious effect the peso is having on external accounts," Bertozzi said.
Colombia's sovereign bond due to mature in 2033 <COLGLB33=RR> rose 1 percent to bid 151.00 and to yield 6.283 percent.
The plan would also improve the country's profile for a future investment credit rating upgrade by the agencies, analysts said.
"If they want to have a more manageable debt profile denominated in pesos, that could facilitate their arrival at investment grade status," said Enrique Alvarez, head of Latin American debt strategy at IDEAglobal in New York.
Meanwhile, Latin American debt spreads narrowed as U.S. Treasury prices weakened on reassuring comments from Fannie Mae, the largest U.S. provider of home financing, saying that the worst of the credit market turmoil caused by the real estate slump may have passed.
Prices for the 10-year Treasury note <US10YT=RR> fell, as the safe-haven allure diminished, while the yield rose to 3.88 percent on Tuesday.
Morgan Stanley Capital International's emerging markets stock index <.MSCIEF> rose 0.57 percent, while the MSCI Latin American stock index <.MILA00000PUS> rose 0.78 percent. (Editing by Leslie Adler) ((manuela.badawy@reuters.com; +1 646-223-6055; Reuters Messaging: manuela.badawy.reuters.com@reuters.net)) Keywords: MARKETS EMERGINGDEBT/
Brazil currency falls, stocks steady despite TIM
Reuters: [2008-05-06 22:47:00]
(Updates to close)
SAO PAULO, May 6 (Reuters) - Brazilian stocks closed little changed on Tuesday, weighed down by banking shares and mobile phone company TIM Participacoes, but buoyed by Petrobras, while the national currency dipped on concerns the government may announce measures to ease a recent surge.
The Sao Paulo Stock Exchange's benchmark Bovespa index <.BVSP> finished just 0.03 percent higher at 70,195.27 points -- a new all-time high close -- after erasing modest losses.
Shares of TIM Participacoes <TCSL4.SA>, Brazil's second-largest mobile phone company, slumped 8.07 percent to 5.24 reais after it reported a wider first-quarter loss. Banks declined after Itau, Brazil's second-largest private sector bank, posted first-quarter results and a slowdown in loan growth.
The Brazilian real <BRBY> weakened for a second consecutive session, edging down 0.12 percent to 1.661 per U.S. dollar.
The government may soon announce measures to boost export industries with a fund to finance Brazilian companies doing business abroad, but the measures are not aimed directly at the strong real, Budget Minister Paulo Bernardo said on Tuesday.
"The government will announce a package (to stimulate exports). Before that package is announced, nothing really will happen in the currency market," said Mario Battistel, manager of currency trading at the Fair brokerage.
Interest-rate futures <0#DIJ:> on the BM&F commodities and futures exchange in Sao Paulo were mostly higher after data on Tuesday showed prices in Brazil's largest city quickened in April. Inflation in Sao Paulo rose 0.54 percent last month, faster than the 0.31 percent gain in March, the Fipe research institute said.
On the stock exchange, Itau <ITAU4.SA>, Brazil's second-largest private sector bank, fell 4.3 percent to 47.61 reais. The bank said on Tuesday its first-quarter profit rose 7.5 percent to 2.04 billion reais from a year earlier and was up 0.7 percent from the fourth quarter. Loan growth slowed to 7.9 percent quarter-on-quarter after expanding 11.9 percent in the fourth quarter. For details, see [ID:nN06364869]
Other banks also fell on concerns growth in lending, one of the main sources of profits for the financial sector in past quarters, may slow further because of an increase in domestic interest rates.
Bradesco <BBDC4.SA> fell 3 percent to 39.09 reais, while Banco do Brasil <BBAS3.SA> dropped 3.67 percent to 28.9 reais.
But state-controlled oil company Petrobras <PETR4.SA> -- Bovespa's bellwether listing -- rose 2.62 percent to 45 reais as crude prices rose nearly 2 percent in London and New York amid concerns over tight supplies.
Mining company Vale <VALE5.SA>, the second most heavily weighted stock in the Bovespa index, gained 1.47 percent to 55.2 reais, buoyed by firmer prices of copper and other industrial metals. (Reporting by Elzio Barreto and Silvio Cascione; editing by Gary Crosse)
((elzio.barreto@thomsonreuters.com; +55-11-5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net)) Keywords: MARKETS BRAZIL/
Soccer-Boca given home ban after linesman hit by ice cube
Reuters: [2008-05-06 22:07:00]
ASUNCION, May 6 (Reuters) - South American champions Boca Juniors have been banned from staging international matches at their Bombonera stadium after a linesman was hit by an ice cube during a game last week.
The South American Football Confederation (CSF) said in a statement that the ban would be lifted once the Argentine club had improved protection in front of the VIP boxes, where the incident occurred.
The club were also fined $30,000.
Referee Jorge Larrionda ended last Wednesday's Libertadores Cup tie against Brazil's Cruzeiro one minute early after linesman Pablo Fandino of Uruguay suffered a cut on his forehead.
Boca, who were winning the third-round, first-leg tie 2-1, have promised to find the culprit and have expressed shock that the ice was thrown from the most expensive seats in the stadium.
"The Alberto J. Armando stadium is suspended from all matches organised by the South American Confederation.....until work has been completed to provide security for players and referees, especially near the VIP boxes," read the decision published on the CSF's Web site (www.conmebol.com).
"The stadium will only be approved once it has been checked by the confederation and only upon the request of the directors for Boca Juniors."
The CSF also confirmed that the result would stand. Cruzeiro had claimed that they should be given a 3-0 win because the game did not finish. The second leg is in Belo Horizonte on Wednesday.
Three years ago, Boca were given a three-match home ban -- widely criticised as too lenient -- after a riot forced their Libertadores match at home to Guadalajara to be abandoned in the 79th minute. (Writing by Brian Homewood; editing by Miles Evans)
((miles.evans@thomsonreuters.com; +44 2075427933; Reuters Messaging: miles.evans.reuters.com@reuters.net. For the latest Reuters Premier League and international football news see: http://football.uk.reuters.com/))
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