* Banco do Brasil SA said the FFIE investment and stabilization fund completed the sale of a 3.67% stake in the bank on May 29. The FFIE is owned by the Sovereign Fund of Brazil and was ordered to sell the stake in 2017 as part of broader austerity measures to reduce Brazil's fiscal deficit.
* Banco del Estado de Chile announced a shake-up of its senior management team and a restructuring of certain divisions, La Tercera reported. As part of the changes, CFO Carlos Martabit will be replaced by Julio Guzmán Herrera, although Martabit will continue to advise the boards of the bank's units.
MEXICO AND CENTRAL AMERICA
* Citigroup Inc. CEO Michael Corbat acknowledged possible threats to the Mexican economy, but said the banking giant's business in the country should continue to be a vital growth driver as the nation's middle class continues to expand. "Clearly, there's some upheaval, some uncertainty in terms of elections, in terms of NAFTA, but we've actually seen consumer confidence, consumer spending very high," Corbat said at a conference.
* Mexico's central bank called on local lenders and brokers to sign on to a code of conduct for the foreign exchange market that seeks to eliminate abusive practices such as collusion, Reuters reported. Companies that do not sign the code by the May 31 deadline will not be able to perform transactions like dollar auctions with the central bank.
* Mexico central bank chief Alejandro Diaz de Leon said local banks have not been the target of new cyberattacks since May 8, but added that an ongoing investigation should be concluded to make sure security weaknesses have been dealt with, Reuters reported.
* Nicaraguan business association COSEP called on President Daniel Ortega to hold early elections amid violent protests over proposed changes to the country's social security system, Reuters reported. The next presidential election is currently set for 2021.
* Moody's changed its outlook on Casa de Bolsa Santander SA de CV to stable from negative, saying that downward pressures on parent company Banco Santander (México) SA Institución de Banca Múltiple's intrinsic credit strength have subsided.
* Fitch Ratings upgraded the national financial insurance strength rating on Panama-based Multibank Seguros SA to AA(pan) from AA-(pan), with a stable outlook. The upgrade reflects the positive evolution of the company's profitability, leverage and liquidity indicators.
* Banco Centroamericano de Integración Económica said it placed two bonds in the Mexican market for a total amount of 4.0 billion Mexican pesos.
* Banco Mercantil do Brasil SA said it will appeal the central bank's recent rejection of its planned capital increase. The central bank refused to approve the hike because Banco Mercantil failed to submit all the required documentation and did not comply with certain required formalities.
* Brazil's GDP grew 1.2% in the first quarter of 2018 compared with the same period last year, and expanded 0.4% on a quarter-over-quarter basis, according to data from government statistics agency IBGE. In the year-over-year comparison, agriculture fell by 2.6% and construction by 2.2%, while industry rose 1.6%.
* Brazilian oil workers started a 72-hour strike on May 30 to push for changes at state-run oil company Petroleo Brasileiro SA, Reuters reported. The strike comes on the heels of a protest by truckers who disapprove of high diesel prices.
ANDEAN
* BBVA Banco Continental SA plans to auction bonds worth 100.0 million Peruvian soles, expandable up to 150.0 million soles, on May 31. The offering is part of the bank's seventh corporate bond program.
* Canada's foreign ministry announced it will place targeted sanctions on 14 Venezuelan officials in response to the South American country's "illegitimate and anti-democratic presidential elections," Reuters reported.
* The economy committee of Peru's Congress will meet June 6 to vote on a bill that would give the SBS banking regulator supervisory authority over the country's more than 600 savings and loans cooperatives, which are seen as a potential weak point in anti-money laundering controls, El Comercio reported. The World Bank said passing the bill would help Peru's chances of joining the Organization for Economic Cooperation and Development.
* Peru's SMV securities regulator issued a resolution modifying rules on anti-money laundering and terrorism financing to bring the regulations in line with standards set by the Financial Action Task Force, Gestion reported.
* The Organization for Economic Cooperation and Development lowered its 2018 GDP growth forecast for Colombia to 2.7% from 3%, El Tiempo reported. The OECD expects growth to accelerate to 3.2% in 2019.
* The overall financial leasing portfolio of Colombian banks saw real growth of 5.3% in March compared to the same month a year ago, La Republica reported, citing data from local banking industry association Asobancaria.
* Santiago Castro, the president of Colombia's Asobancaria banking association, said local bank loans granted for the troubled Hidroituango dam project are fully covered and not at risk of default, La Republica reported. Bank loans reportedly represent around 60% of the project's total financing.
* Banco Colpatria Multibanca Colpatria SA said it appointed Jabar Singh vice president of wholesale banking. He previously served as the company's manager of corporate banking.
* Banco Financiero del Peru SA said it appointed Drago Guillermo Kisic Wagner its new board chairman. The appointment follows the resignation of Jorge Gruenberg Schneider from the chairman position.
SOUTHERN CONE
* HDI Seguros SA, HDI Seguros de Garantía y Crédito SA and HDI Seguros de Vida SA appointed Felipe Feres Serrano general manager, replacing Patricio Aldunate Bossay. The new appointment will take effect Aug. 1.
* A Chilean senator has asked for Mario Farren, the head of the SBIF banking regulator, to appear before a panel and answer questions about the causes and consequences of a recent system failure at Banco de Chile, Diario Financiero reported. Senator Felipe Harboe believes there was a lack of transparency in communications regarding the incident, which generated speculation about the country's potential vulnerability to cyberattacks.
* Asia-Pacific: Hong Kong OKs virtual banks; Indonesia hikes rate; ICICI Bank to probe CEO
* Middle East & Africa: Mizrahi-Union Bank merger blocked; NCB has new CEO; Allianz buys Africa Re stake
* Europe: Deutsche Bank commits to US amid cuts; Italy crisis may delay RBS stake sale
* Global Markets: New York markets pre-open: Equities advance as Italian fears ease
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.
