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Brazil currency, stocks drop amid strike; ILC's Q1 profit rises 7.8%

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Brazil currency, stocks drop amid strike; ILC's Q1 profit rises 7.8%

* The Sao Paulo stock market index fell 4.49% on May 28, while Brazil's real currency dropped 2.3% at the close of trading, as the government announced that concessions aimed at ending a truckers' strike will cost 9.5 billion reais, Bloomberg News reported. Reuters and The Wall Street Journal also carry reports. Itaú Unibanco Holding SA CEO Candido Bracher said the ongoing strike is affecting multiple sectors and represents one of the biggest short-term risks for Brazil's economy, Valor Econômico reported.

* Inversiones La Construcción SA booked a first-quarter profit of 35.66 billion Chilean pesos, up 7.8% from 33.07 billion pesos in the year-ago period. Operating income ticked 1.5% higher year over year, while nonoperating income increased 110.2%.

MEXICO AND CENTRAL AMERICA

* Banco Centroamericano de Integración Económica added $20 million to Honduras-based Banco del País SA's existing global credit line, bringing the total available to $60 million. The increase in the credit line will help finance projects that fit within Banco Centroamericano's financial intermediation programs.

* Banco Promerica de Costa Rica SA said it plans to issue subordinated bonds worth $2.1 million May 31. The series F6 bonds will have a term of 10 years and carry a gross interest rate of 8.15%.

* Banco Bilbao Vizcaya Argentaria SA completed the transformation of its Mexican banking operations at a cost of $3.1 billion, or 88.5% of the total budget of $3.5 billion, El Economista reported. The funds were used to upgrade 1,800 branches belonging to BBVA Bancomer SA, update computer systems and establish new corporate headquarters.

* Mexican banks invest about 2.4 billion pesos in security measures to protect against cyberattacks each year, El Economista reported, citing comments from Marcos Martínez Gavica, the president of local banking industry association ABM.

* Mexico should be able to continue attracting foreign investment regardless of the outcome of July's presidential election, El Economista reported, citing comments from the head of the BIVA stock exchange, María Ariza.

* American Express Co. appointed Santiago Fernández Vidal CEO in Mexico, El Economista reported. The executive will continue in his position as head of the personal card and consumer business, a role he has held for six years.

BRAZIL

* The total volume of loans in Brazil's financial system increased 0.3% in April from the previous month and ticked 0.6% higher from a year ago, Diário Comércio Indústria & Serviços reported, citing central bank data. The sector's delinquency rate fell to 4.7% in April from 4.8% in March, the publication reported separately.

* ATMs in Brazil's Banco24Horas network are in danger of running out of cash May 30 in regions where fuel shortages caused by a truckers' strike have affected cash-in-transit services, Valor Econômico reported, citing TecBan, the company that operates the network.

* Banco do Estado do Rio Grande do Sul SA card payment unit Banrisul Cartões SA, which recently filed for an initial public offering of its preferred shares, has been valued at about 2.5 billion reais in initial conversations between the company and investors, Valor Econômico reported, citing three unnamed sources.

ANDEAN

* Peru's central bank said it will increase the foreign investment limit for local privately run pension funds to 48.5% in June and to 49% the next month from 48% currently, Reuters reported. The move will enable the funds to invest an additional $500 million in financial instruments on the global markets.

* Venezuelan banks have still not received new bills that will be introduced as part of the country's monetary overhaul, which will remove three zeros from the economy's prices next week, Reuters reported, citing two finance industry sources. President Nicolas Maduro in March said the bolivar currency would be redenominated June 4, but local banks have not had a chance to adjust cash machines for the change.

* India said it does not plan on using Venezuela's so-called petro cryptocurrency when trading oil with the South American country, which is offering discounts on oil sales done in the petro amid sanctions from the U.S., Reuters reported.

* Peruvian Economy and Finance Minister David Tuesta said the government is "very close" to passing a law on banking secrecy that would give the Sunat tax agency access to bank account details of companies and individuals, SEMANAeconómica reported. Under current rules, Sunat must seek judicial permission to lift banking secrecy in specific cases.

* Colombia's finance ministry has launched a consultation on proposed capital rules that aim to bring solvency requirements for local banks in line with Basel III standards, Portafolio reported.

SOUTHERN CONE

* Banco de Chile said a system failure that hit the bank May 24 was due to a computer virus, Diario Financiero reported. The bank was reportedly still working with international emergency advisers to restore systems on May 28.

* Paraguayan President Horacio Cartes said he submitted his resignation to Congress in order to legally assume a seat in the Senate on July 1, Reuters reported. If the resignation is accepted, Vice President Alicia Pucheta will lead the country in the coming months.

* At least three private wealth management advisory firms in Chile have expressed interest in a project to create an ethical investment bank, Diario Financiero reported. The project, called "Doble Impacto," is expected to attract further interest in the coming days, according to the report.

* Fitch Ratings revised its outlook on Nación Seguros SA, Nación Seguros de Retiro SA and Nación Reaseguros SA to stable from positive. The change follows the revision of the sovereign outlook on Argentina to stable earlier in May.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: China overseeing 5 financial firms; SGX, NSE ends trading link talks

* Middle East & Africa: Kenya, Tunisia hold rates; First International Bank of Israel posts Q1 profit

* Europe: UK readying RBS stake sale; Italian bank stocks fall amid political turmoil

* Global Markets: New York markets pre-open: Italian turmoil grips global stocks, bonds

Helen Popper contributed to this article.

The Daily Dose has an editorial deadline of 8 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.