Venezuela & PDVSA Indicative Run

                     Bid      Ask    Bid    Ask
Security              Px       Px    YTM    YTM Bench
——————————————————————————-
**Venezuela***
VENZ  10¾  13   102.750-103.500   8.891/ 8.401 1YR
VENZ  8½   14    95.500- 96.500  10.452/10.006 2YR
VENZ  5¾   16    80.000- 82.000  12.113/11.394 3YR
VENZ  13⅝  18   100.000-103.000  13.621/12.928 5YR
VENZ  7     18    73.000- 74.000  13.092/12.818 5YR
VENZ  7¾   19    75.750- 76.500  12.785/12.599 5YR
VENZ  6     20    64.000- 65.000  12.943/12.687 7YR
VENZ  12¾  22    95.000- 96.000  13.653/13.466 10YR
VENZ  9     23    75.250- 76.250  13.291/13.081 7YR
VENZ  8¼   24    69.500- 70.500  13.277/13.065 7YR
VENZ  7.65  25    65.500- 66.500  13.239/13.021 7YR
VENZ  11¾  26    87.000- 88.000  13.832/13.654 7YR
VENZ  9¼   27    76.500- 77.500  12.750/12.569 7YR
VENZ  9¼   28    73.500- 74.500  13.254/13.063 7YR
VENZ  11.95 31    87.000- 87.750  13.897/13.772 10YR
VENZ  9⅜   34    74.000- 75.000  12.975/12.798 7YR
VENZ  7     38    61.000- 62.000  11.862/11.673 10YR
**PDVSA***
PDVSA 8     13    97.000- 98.500   9.848/ 8.909 2YR
PDVSA 4.9   14    83.750- 85.000  12.018/11.412 3YR
PDVSA 5     15    76.500- 77.500  13.139/12.734 3YR
PDVSA 5⅛   16    69.500- 70.500  14.164/13.797 3YR
PDVSA 5¼   17    69.500- 70.250  13.619/13.364 5YR
PDVSA 8½   17    79.750- 80.750  13.689/13.395 5YR
PDVSA 12¾  22    87.000- 88.000  15.322/15.105 10YR
PDVSA 5⅜   27    50.500- 52.750  12.867/12.324 10YR
PDVSA 5½   37    49.000- 50.000  11.928/11.702 10YR

The prices contained herein are indicative as of the time of publication.  They do not represent firm bids and offers.  For up to date pricing please contact your Avila Capital Markets representative.  This is not a recommendation, solicitation, or offer to buy or sell any securities or other financial products.

(El Universal) Pdvsa says it invested USD 15.1 billion in 2011

Hydrocarbons

The investments of the state-run oil holding rose 31% compared to 2010

Pdvsa expects to increase production by 455,000 bpd in 2012 (File photo)

ERNESTO J. TOVAR |  EL UNIVERSAL

Wednesday January 25, 2012  01:48 PM

Rafael Ramírez, Venezuela’s Minister of Petroleum and Mining, visited Tuesday the Orinoco Oil Belt and said that oil production in that area is expected to increase from 1.18 million bpd to 1.63 million.

He said that about 100,000 workers will be required in the Orinoco Belt to comply with the goals of the Oil Sowing Plan.

Ramírez also said that state-run oil company Petróleos de Venezuela (Pdvsa) invested USD 15.1 billion in 2011, 31% higher than in 2010, when Pdvsa invested USD 11.5 billion. According to the 2010 annual management report released by Pdvsa, the Venezuelan oil industry planned to invest USD 18.36 billion (including partners’ contribution) in the Oil Sowing Plan in 2011.

Ramírez said that Pdvsa’s financial debt amounted to USD 34.8 billion at the end of 2011, following a 40% increase compared to the previous year.

“We are comfortable with this level of debt,” the minister noted.

“Pdvsa’s net worth exceeds USD 75 billion and Pdvsa’s assets amount to USD 162 billion,” Ramírez reported.

The payment of the amount awarded to Exxon Mobil by the International Chamber of Commerce will be made within the deadline, he concluded.

http://www.eluniversal.com/economia/120125/pdvsa-says-it-invested-usd-151-billion-in-2011

(BN) Brazil’s Central Bank Signals it Will Lower Interest Rates to Below 10%

 

By Matthew Bristow and Raymond Colitt – Jan 26, 2012 8:18 AM ET

 

Brazil’s central bank said there is a “high” chance its benchmark rate will drop below 10 percent, signaling it remains focused on spurring economic growth even as record-low unemployment pressures consumer prices. Yields on interest rate futures plunged.

The bank’s board, led by President Alexandre Tombini, said it sees significant structural changes in Brazil’s economy that will allow it to continue lowering borrowing costs, according to the minutes from its Jan. 17-18 meeting published today.

After growth in the world’s second-biggest emerging market slowed in the second half of last year more than expected, and in the absence of a solution to Europe’s debt crisis, the bank said it sees “a high probability for the realization of an outlook in which the Selic rate moves toward a single digit.” The board voted unanimously last week to reduce the rate to 10.5 percent, as forecast by all 67 analysts surveyed by Bloomberg.

After today’s minutes were released traders scrapped bets that signs of faster growth, quickening inflation and an improved outlook in global markets would lead policy makers to end their easing cycle soon. The yield on interest rate futures maturing in Jan. 2013 fell 18 basis points to 9.66 percent at 9:34 a.m. local time. It was the biggest drop since October.

“After the recent developments domestically and internationally, the market was expecting the Selic at 10 percent,” said Flavio Serrano, senior economist at Espirito Santo Investment Bank in Sao Paulo. “We will revise our forecast downwards for sure.”

Read full article…

http://www.bloomberg.com/news/2012-01-26/brazil-central-bank-sees-high-chance-of-selic-falling-to-single-digits.html

(BN) Argentina Had Primary Surplus of $1.1 Billion Last Year

By Silvia Martinez – Jan 24, 2012 5:18 PM ET

 

Argentina’s budget surplus excluding interest payments fell to 4.9 billion pesos ($1.1 billion) in 2011 from 25.1 billion pesos a year earlier.

In 2011, South America’s second-biggest economy had an overall deficit of 30.5 billion pesos compared with a surplus of 3 billion pesos the previous year, according to a report released by the Economy Ministry today in Buenos Aires.

Last month, Argentina had a primary budget deficit of 8.1 billion pesos and an overall deficit of 22.3 billion pesos, according to the report.

“We have kept the numbers in order even with such a complex international context,” Economy Minister Hernan Lorenzino told reporters. Last month’s deficit was after a payment on warrants linked to economic growth that were issued as part of a 2005 debt restructuring, he said.

“Historically there’s a deficit in December,” Lorenzino said.

The country will continue to use central bank reserves to pay debt this year, within the limits set by the law, Lorenzino said. The government, which, according to the budget, plans to use $5.7 billion of such funds to service debt in 2012, is only allowed to draw on reserves that exceed the monetary base, according to current legislation.

Reserves fell to $46.7 billion on Jan. 23 from as high as $52 billion in January last year, according to central bank data.

To contact the reporter on this story: Eliana Raszewski in Buenos Aires at eraszewski@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

(Andina.com.pe) Peru’s government approves sovereign bond issue up to $1.6bln

 

Lima, Jan. 25 (ANDINA).Peru’s Finance Ministry has approved the placement of up to $1.6 billion in sovereign bonds, either in the domestic or external debt markets.

The funds will be used to help finance Peru’s balance of payments, according to a note published in the official gazette on Wednesday.

Peru’s finance ministry has been active in recent years by making various debt placements and in restructuring existing debt, Dow Jones Newswires reports.

Peru has an investment-grade debt rating from the three largest debt rating agencies.

(END) INT/EEP

 
http://www.andina.com.pe/Ingles/Noticia.aspx?id=69Uf9Oya3dE=

(MercoPress) Chile the most globalized economy in Latin America, says Ernst & Young

Wednesday, January 25th 2012 – 21:32 UTC

Chile has emerged as the most globalized economy in Latin America and moved up to 25th place in the world, according to global consulting firm Ernst & Young. Chile is among the countries to improve their position despite global economic uncertainty, the firm’s annual Globalization Index found.

James Turley, chairman and CEO of Ernst & Young, admits threat of protectionism but globalization continues to grow

“Unlike other countries, the policies of Chilean governments have promoted openness in times of turbulence, taking the sufficient precautions so the economic turmoil does not hit the country hard,” Cristián Lefevre, senior partner of Ernst & Young Chile, told El Mercurio.

The globalization measurement is based on five factors: foreign trade, capital movement, exchange of technology and ideas, labour movement, and cultural integration.

Chile’s greatest strength in 2011 was the arrival of foreign capital, which ranked fourth globally, behind Ireland, Hong Kong and Belgium. Chile also scored high in foreign trade.

Technology and cultural integration were cited as the country’s weakest points, with both ranking well below Singapore and Hong Kong, the leaders in those categories.

In Latin America, however, Chile remains the pacesetter. Mexico is the closest nation to Chile in terms of globalization, coming in the 36th position, followed by Colombia (43), Brazil (47), Ecuador (49) and Argentina (50).

Read full article…

http://en.mercopress.com/2012/01/25/chile-the-most-globalized-economy-in-latin-america-says-ernst-young

Venezuela & PDVSA Indicative Run

                     Bid      Ask    Bid    Ask
Security              Px       Px    YTM    YTM Bench
——————————————————————————-
**Venezuela***
VENZ  10¾  13   102.750-103.500   8.891/ 8.401 1YR
VENZ  8½   14    96.000- 97.000  10.228/ 9.786 2YR
VENZ  5¾   16    81.500- 82.500  11.572/11.218 3YR
VENZ  13⅝  18   102.000-105.000  13.156/12.481 5YR
VENZ  7     18    73.000- 74.000  13.092/12.818 5YR
VENZ  7¾   19    74.750- 76.500  13.036/12.599 5YR
VENZ  6     20    64.000- 65.000  12.943/12.687 7YR
VENZ  12¾  22    95.250- 96.250  13.606/13.420 10YR
VENZ  9     23    75.250- 76.250  13.291/13.081 7YR
VENZ  8¼   24    69.500- 70.500  13.277/13.065 7YR
VENZ  7.65  25    66.000- 67.000  13.130/12.914 7YR
VENZ  11¾  26    87.500- 88.500  13.743/13.567 7YR
VENZ  9¼   27    77.000- 78.000  12.659/12.479 7YR
VENZ  9¼   28    74.750- 75.750  13.016/12.830 7YR
VENZ  11.95 31    87.250- 88.250  13.855/13.689 10YR
VENZ  9⅜   34    75.500- 76.500  12.711/12.539 7YR
VENZ  7     38    63.000- 64.000  11.490/11.312 10YR
**PDVSA***
PDVSA 8     13    98.000- 99.000   9.220/ 8.600 2YR
PDVSA 4.9   14    84.500- 85.500  11.653/11.173 3YR
PDVSA 5     15    77.000- 78.000  12.936/12.534 3YR
PDVSA 5⅛   16    70.500- 71.500  13.797/13.436 3YR
PDVSA 5¼   17    69.750- 71.000  13.534/13.111 5YR
PDVSA 8½   17    80.000- 81.000  13.615/13.322 5YR
PDVSA 12¾  22    88.500- 89.500  14.997/14.785 10YR
PDVSA 5⅜   27    52.500- 53.200  12.383/12.220 10YR
PDVSA 5½   37    49.500- 51.000  11.814/11.484 10YR

The prices contained herein are indicative as of the time of publication.  They do not represent firm bids and offers.  For up to date pricing please contact your Avila Capital Markets representative.  This is not a recommendation, solicitation, or offer to buy or sell any securities or other financial products.

 

(Hispanically Speaking News) Chile: Top Latin American Country on 2012 Index of Economic Freedom

Published at 11:43 am, January 15, 2012

 

Photo Credits: Sebastian Pinera, President of Chile

Chile is the only Latin American country to make the top 10 in the 2012 Index of Economic Freedom, coming in 7th place. 

For over a decade The Heritage Foundation, in partnership with The Wall Street Journal has tracked the march of economic freedom around the world with the influential Index of Economic Freedom. Since 1995, the Index has brought economist Adam Smith’s theories about liberty, prosperity and economic freedom to life by creating 10 benchmarks that gauge the economic success of 184 countries around the world.

This year Hong Kong came in first place followed by Singapore and the United States came in 10th place. 

Read full article…

http://www.hispanicallyspeakingnews.com/notitas-de-noticias/details/chile-top-latin-american-country-on-2012-index-of-economic-freedom/13335/

(Andina.com.pe) Peru’s November GDP expanded 4.95%

 

• Photo: ANDINA / Archive.

Lima, Jan. 16 (ANDINA).Peru’s gross domestic product (GDP) expanded 4.95% in November 2011, compared with the same month a year earlier, the government said.

The National Institute for Statistics and Information, or INEI, said Monday that Peru’s economy has now expanded for 27 straight months.

In a statement the agency pointed to strong domestic demand as the reason for November’s economic expansion.

The country’s economy grew 6.5% in the first eleven months of 2011; while in the December 2010 to November 2011 period, GDP expanded by 7.13%, the agency added.

In November, the agriculture sector rose by 2.65%, while fishing sector activity expanded by 1.29% over the same month a year earlier.

Transportation and communications sector activity rose by 9.29%, while retail sector activity increased by 7.02% year on year.

The electricity and water sector expanded by 6.89% in November, while mining and hydrocarbons declined by 1.02%.

Meanwhile, growth in the construction sector, one of the drivers of Peru’s economic growth, continued to ease in November, with the sector expanding by 3.23%, INEI said.

(END) EBS/JPC/LGV/EEP

http://www.andina.com.pe/Ingles/Noticia.aspx?id=q6JIuAxRrLM=

(MercoPress) Brazil economy rebounds in November boosted by domestic consumer spending

Tuesday, January 17th 2012 – 07:00 UTC

Brazil’s economy grew at its fastest pace in 19 months in November, reversing a three-month contraction, as a recovery in consumer spending helped Latin America’s largest economy shrug off a global slowdown. Yields on interest rate futures rose.

Good news for President Rousseff

Seasonally adjusted economic activity climbed 1.15% in November from October, the fastest pace in 19 months, the central bank said in a report published on its website Monday.

The increase in economic activity ended three straight months of declines from August through October, the longest contraction since the one that followed the bankruptcy of Lehman Brothers Holdings Inc. in 2008. Since August, President Dilma Rousseff’s administration has cut the benchmark interest rate three times, lowered taxes on consumer goods and eased curbs on credit to try to revive growth and protect Brazil from the European debt crisis.

The non-seasonally adjusted economic activity index rose 0.79% from a year earlier, the central bank said. The yield on the interest rate futures contract maturing in January 2013, the most traded in Sao Paulo Monday, rose two basis points, or 0.02 percentage point, to 10.03 percent in Brazil. The Real appreciated 0.3% to 1.7817 per dollar.

Read full article…

http://en.mercopress.com/2012/01/17/brazil-economy-rebounds-in-november-boosted-by-domestic-consumer-spending