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* Spain's Banco Bilbao Vizcaya Argentaria SA has decided to maintain ownership of FORUM Servicios Financieros SA, its Chilean automobile financing business, after concluding that the unit can generate more value for shareholders, anonymous sources told Diario Financiero. BBVA put the subsidiary up for sale in late 2018, describing it as "a highly attractive business."
* Peru's central bank maintained its benchmark interest rate at 2.50%, saying that annual inflation remained within its target range in September. "The recovery of public investment in September, after a lower performance in January-August, is expected to continue in the remainder of the year," it said.
MEXICO AND CENTRAL AMERICA
* Crédito Real SAB de CV Sociedad Financiera de Objeto Múltiple ER said tenders for the repurchase of its 7.250% senior notes due 2023 reached about $198.1 million as of the Oct. 9 expiry date. The amount accounted for 66.0% of the maximum tender offer and 31.7% of the total outstanding principal amount of the notes.
* Most of the policymakers at Mexico's central bank believe core inflation expectations will "start decreasing as the indirect effects of the shocks on energy product prices fade," Reuters reported, citing minutes of the bank's Sept. 26 policy meeting. The bank lowered its benchmark rate by 25 basis points to 7.75% at the meeting, although two board members voted for a cut of 50 basis points.
* The World Bank lowered its 2019 GDP growth forecast for Mexico to 0.6% from 1.7% previously, saying that it expects the country's economic slowdown to continue in the short and medium term, El Financiero reported. The agency expects the broader Latin America and Caribbean region, excluding Venezuela, to grow 0.8% in 2019 and 1.8% in 2020.
* Caixa Econômica Federal's rate cuts on residential mortgages marketed mainly to low- and middle-income borrowers is credit positive for the bank, according to Moody's. The lower rates will allow Caixa to have higher loan origination volume in its core product amid an expected rise in competition, the rating agency said.
* Brazilian President Jair Bolsonaro said he fully supports Economy Minister Paulo Guedes, adding that Guedes has complete control over economic matters, Reuters reported. The comments were an apparent attempt to refute speculation of conflict between the two.
* Brazilian banks' return on shareholder equity increased to 15.8% in June, up 1.1 percentage points from the end of 2018 and the highest level since March 2012, Reuters reported, citing the central bank's latest financial stability report. Considering private sector banks only, ROE improved to 16.5% from 15.6% during the same period. "Simulations continue to show that Brazilian banks are capable of coping with stress situations," the central bank said.
* U.S. Secretary of State Mike Pompeo said the U.S. "will make a strong effort to support Brazil's accession" to the Organization for Economic Cooperation and Development, Reuters reported.
* Brazil's central bank announced the extrajudicial liquidation of foreign exchange brokers Torre and JN-Maxi, citing "serious violations of legal and regulatory rules," Valor Econômico reported. Neither company is linked to a banking conglomerate, and their liquidation will not have a major impact on the domestic financial sector, the bank said.
* Brazilian President Jair Bolsonaro said the country's benchmark Selic interest rate could end 2019 at 4.5% as inflation remains low, Estadão reported. The central bank cut the rate to a record low 5.5% in September and has two more policy meetings scheduled for this year.
* Brazilian Economy Minister Paulo Guedes said the government plans to forward a tax overhaul proposal, which includes a federal value-added tax, to the lower house of Congress once its proposed pension reform is passed, Reuters reported.
ANDEAN
* Bolivian President Evo Morales is expected to win the first round of voting in general elections due Oct. 20, but the margin will likely be small enough to force a second round of voting, Reuters reported, citing a poll by academic and civil organizations. Morales will go up against Carlos Mesa, who leads the Citizen Community alliance.
* Rigel Peru SA Compania De Seguros De Vida said Claudio Alberto Miguel Sierpe Pavez resigned as general manager. The insurer did not immediately name a replacement.
SOUTHERN CONE
* Argentina's country risk, as measured by the JP Morgan Emerging Markets Bond Index Plus, dropped below 2,000 points as bond prices recovered from the market shock that followed primary elections in August. The country risk index dropped 122 points to 1,907, El Cronista reported, noting that investors are still pricing in a tough renegotiation of Argentine debt ahead.
* Middle East & Africa: National Bank of Kuwait's Q3 results out; partial sale of UAE's Najm explored
Pablo Jimenez Arandia contributed to this article.
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