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In this list

Banco do Brasil ends partnership with postal service; Fenaban sweetens wage proposal

Industries Most and Least Impacted by COVID 19 from a Probability of Default Perspective March 2020 Update

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Banco do Brasil ends partnership with postal service; Fenaban sweetens wage proposal

* Brazil's ongoing bank employee labor strike over wages entered its 30th day on Oct. 5, makingit the longest one since 2004, national financial workers union Contraf-CUT said.The strike has shuttered 13,104 branches, or 55% of the country's branch count.Valor Econômico reported that bankingfederation Fenaban has improvedits offer for an increases in wages to 8% from 7%, and labor unions are currentlyevaluating this latest proposal.

* Discussions to renewa banking services partnership between Bancodo Brasil SA and Brazil's national postal service have ended with noagreement, Valor Econômico reported. Thecurrent agreement between the two parties expires Dec. 2, and the postal serviceis already looking for a new partner.

MEXICO AND CENTRAL AMERICA

* Grupo FinancieroBanamex SA de CV CEO Ernesto Torres said parent company 's recent decision to investanother $1 billion in its Mexican operations is a vote of confidence in the countryand its future prospects, El Financieroreported. The investment comes at a time when Citi is scaling back its presencein other Latin American countries such as Brazil and Argentina.

* Recaredo Arias, the head of Mexican insurance industry associationAMIS, said insurers have started to feel the impactof a weakening local currency, especially in terms of claims payments for machinery,auto parts and medicine, El Economistareported.

BRAZIL

* Judicial recovery requests in Brazil hit a record high in September with 244applications, up 178% from August and 66% from a year ago, according to data fromcredit research firm Serasa Experian. "Facing a prolonged recession that deterioratescash flow, combined with adverse credit conditions…[companies] end up having touse judicial recovery instruments as a survival mechanism," the firm said.

* The Brazilian government's proposal to limit public expenditureto the previous year's inflation rate is facing growing criticismfrom within President Michel Temer's ruling coalition, Bloomberg News reported.The proposal was presented to Congress earlier this week, and the first vote onthe measure is expected to be held in the coming days.

* A federal judge in Brazil denieda request for the acquittal of banker Joseph Safra, who is being investigated overcorruption charges in the so-called Operação Zelotes case, Valor Econômico reported. The judge set Oct. 20 as the date when hearingsin the trial will begin.

ANDEAN

* At Colombian financial institutions association Anif'smost recent meeting, bankers said the country's financial sector remains strongand is preparedto deal with adverse factors such as voters rejecting a government peace deal withFARC rebels and low oil prices, La Repúblicareported.

* The World Bank cutits 2016 GDP growth projection for Colombia to 2.3% from a forecast of 2.5% in June,citing the country's large fiscal imbalances, La República reported. The IMF also reduced its growth forecast forColombia earlier in 2016, citing poor macroeconomic policy.

* S&P Global Ratings said the recent closureof six unregulated financial companies that were operating in the Colombian payrollloans market does not pose any problems for regulated lenders, Portafolio reported. The rating agency believescompetition will increase in the consumer lending segment during the next two years,which could impact profitability.

SOUTHERN CONE

* Argentina's national banking union, Asociación Bancaria,threatened to call another generalstrike before the end of October if banks do not heed its salary demands,El Cronista reported, citing a radio interviewwith the union's press secretary, Eduardo Berrozpe. The union's initial agreementwith banks in April was for a nominal salary hike of 33%, but this has been exceededby inflation, resulting in calls for a new agreement.

* Fitch Ratings affirmedUruguay's long-term foreign and local currency issuer default ratings at BBB-, witha stable outlook. The country's ratings are constrained by persistently high inflation,high public debt and a rigid spending profile. However, these factors are balancedby strong structural features, established external liquidity buffers and low fiscalfinancing risks.

* Moody's expects annual growth in lending by Chilean banks toslow to about 8% in 2016,down from double-digit growth in previous years, due to the country's worseningeconomic climate and slower growth in mortgages, Felipe Carvallo, a senior analystat the rating agency, told S&P Global Market Intelligence. Although lower loangrowth means lower risk for banks, their asset quality is also worsening due tounemployment and the country's generally poor economic situation, Carvallo said.

* Argentina reached an agreementto pay about $40.5 million to Switzerland-based Banca Arner SA in a defaulted sovereign bond settlement,court-appointed mediator Daniel Pollack said in a statement. Banca Arner will surrenderall of its defaulted Argentine bonds and dismiss its lawsuit against the country.

* Argentina issuedits first euro-denominated bond since 2010, raising €2.5 billion in a dual-trancheoffering of notes due 2022, with a yield of 4%, and notes due 2027 that yield 5.125%,Bloomberg News reported, citing "a person familiar with the matter."

* Financing for the private sector in Argentina increased3% in September from the previous month, with U.S. dollar-denominated loans rising8% and local currency credit growing nearly 2%, El Cronista reported, citing data from Banco Central de la República Argentina.

PAN LATIN AMERICA

* The World Bank said it expects Latin America and theCaribbean to see an economic contractionof 1.1% in 2016 as general growth stability in Mexico, Central America and the Caribbeanis offset by recessions elsewhere in the region. However, the institution foreseesthe region growing 1.8% in 2017 due to expected expansions in Brazil and Argentina.

IN OTHER PARTS OF THEWORLD

* Asia-Pacific: Chinesefirms to acquire Singapore reinsurer; Switzerland asks Malaysia for legal help on1MDB probe

* Middle East & Africa: Fidelity Bank Ghana mulls IPO; FirstRand eyes M&A opportunities inAfrica

* Europe: IMF stressesNPL issue; SVG accepts Goldman, CPPIB offer; RBI, RZB to merge

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.

Paula Mejia contributedto this article.

The Daily Dose has an editorialdeadline of 8 a.m. São Paulo time, and scans news sources published in English,Portuguese and Spanish. Some external links may require a subscription.