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Stone Pagamentos moves closer to IPO; Mexico retaliates against US tariffs

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Stone Pagamentos moves closer to IPO; Mexico retaliates against US tariffs

* The U.S. government announced a 25% tariff on steel imports and a 10% tariff on aluminum imports from the European Union, Canada and Mexico. Mexico reacted swiftly, imposing tariffs on products from U.S. heartland states that backed President Trump in the 2016 election, Reuters reported. Mexican Foreign Minister Luis Videgaray said talks to revamp the NAFTA trade pact will continue despite the "unjust and unilateral" tariffs set by the U.S.

* Brazilian card payment processing company Stone Pagamentos SA has started hiring banks to coordinate its planned initial public offering in New York, sources told Valor Econômico. Stone has already enlisted Goldman Sachs and JP Morgan, according to the report.

MEXICO AND CENTRAL AMERICA

* Mexico's central bank said 80% of local banking transactions are operating normally within its payment system following the cyberattacks that occurred in late April and early May, El Financiero reported. The remaining 20% of transactions from the "most vulnerable institutions" are for now being channeled through alternative mechanisms, central bank chief Alejandro Díaz de León said.

* The central bank of the Dominican Republic maintained its benchmark policy rate at 5.25% per annum, forecasting inflation to remain within the bank's target range and citing favorable external and internal economic growth.

* HSBC México SA Institución de Banca Múltiple Grupo Financiero HSBC placed $300 million worth of subordinated debt in a private issuance, with parent company HSBC Holdings PLC purchasing the notes. HSBC México will use the proceeds to strengthen its capital and bolster its organic growth strategy.

* In the minutes of the Mexican central bank's May 17 policy meeting, at which it held its benchmark rate at 7.50%, the bank said all of its board members "agreed that it is necessary to continue implementing a prudent monetary policy." The members "also indicated that the Mexican economy could be affected by some shocks that could generate additional inflationary pressures in the following months."

* Guatemala's Banco de Desarrollo Rural SA is evaluating a possible issuance of debt in foreign markets and is aware of investor interest in the potential issuance, Edgar Guzmán Bethancourt, an executive at the bank, told El Periodico.

* Mexico's Focoop fund, which aims to protect customers of savings and loan cooperatives, is in solid financial shape despite the recent closures of three such entities, El Economista reported, citing Joel Froylán Salas Navarro, head of the fund's technical committee.

* Credit granted to the private sector by Mexican commercial banks increased 5.9% year over year in April, accelerating from the 5.7% growth rate seen in March, El Economista reported, citing central bank data. Credit to companies and individuals with business activities rose 9.3% year over year in April.

BRAZIL

* A Brazilian oil workers union finished a strike ahead of schedule on May 31, while an 11-day trucker protest also came to an end, providing some relief to President Michel Temer as he struggles with low approval ratings, Reuters reported.

* The recent liquidation of digital bank Banco Neon SA has not hampered the Brazilian financial technology sector's success in drawing new investment, industry executives told Valor Econômico.

ANDEAN

* BBVA Banco Continental SA said it raised 132.4 million Peruvian soles in an offering of series A corporate bonds. Total demand for the offering reached 212.3 million soles.

* Banco de la Nación said Sergio Bassino Bellacci resigned as the bank's general manager, effective May 31. Juan Carlos Bustamante Gonzales will replace Bassino Bellacci at the bank's helm.

SOUTHERN CONE

* Latin American retail giant SACI Falabella said it will merge its Chilean bank affiliate Banco Falabella with its cards business, CMR Falabella SA, in a move that will create Chile's largest credit card issuer. "This integration will generate significant synergies resulting from additional revenues due to the acceleration of growth, efficiencies in infrastructure and technology, and the acceleration of the digital transformation," Falabella said.

* Argentine e-commerce company Mercado Libre plans to expand into digital banking services with a new online investment platform to be called Mercado Fondos, La Nación reported. The expansion will involve a partnership with Buenos Aires-based Banco Industrial SA.

* Argentina's central bank has launched an austerity drive in line with government efforts to cut the fiscal deficit, La Nación reported. Under the plan, staff leaving the monetary authority will not be replaced, while the wages of chauffeurs will be reduced. The bank's 2018 budget is 30% lower than last year.

* Bank of Tokyo-Mitsubishi UFJ Ltd. - Sucursal Buenos Aires has decided to close its sole branch in Argentina as part of a review of the parent company's global operations, sources told El Cronista. The premises of the branch will serve as the location for a representative office controlled by the bank's New York-based affiliate.

* Wanap, a digital bank set to launch in Argentina later in June, has changed its name to Wilobank after mobile banking application Ualá filed a legal challenge to protect its copyright, citing potential confusion between the two names, El Cronista reported.

* The delinquency rate in Paraguay's banking system fell to 3.02% at the end of April from 3.08% in the same month a year earlier, 5días reported, citing central bank data.

* Chilean financial markets commission CMF levied a fine of 40.6 million pesos on life insurer Zurich Santander Seguros de Vida for misleading advertising after the company changed the terms of a policy that promised coverage until the age of 99, La Tercera reported.

* Banco Internacional SA said it placed 1 million unidades de fomento in 30-year subordinate series F bonds. The bonds carry a coupon rate of 2.8%. The unidad de fomento, or UF, is Chile's inflation-indexed currency unit,.

* A recent drought in Argentina will result in a decline in exports, negatively impacting the country's economy and the government's fiscal accounts, Moody's said. For Argentine banks and insurance companies, the effects will be largely contained, despite their exposure to the agribusiness sector.

PAN LATIN AMERICA

* Global investment banks will need to surpass peers in deploying people, capital and technology to successfully serve clients and effectively manage risk to survive in an intensely competitive sector, Moody's said. Scale advantages could benefit some banks, although the competitive standing of individual companies is likely to be in flux, it added.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: Hong Kong fines Hang Seng Bank unit; Nippon Life buys stake in MassMutual Japan

* Middle East & Africa: UAE's Abraaj faces wind-up petition; Kenya to probe banks over stolen funds

* Europe: S&P downgrades Deutsche; Political worries shift to Spain from Italy

* Global Markets: New York markets pre-open: Stocks shrug off trade concerns, bouyed by Italy

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.