trending Market Intelligence /marketintelligence/en/news-insights/trending/hpvzqtcevc2mddgqqjvmjw2 content esgSubNav
In This List

Chinese firm invests in Nubank; IMF cuts growth forecast for Latin America

Blog

Post-webinar Q&A: Speed and Scalability – Automation in Credit Risk Modeling

Case Study

A Chinese Bank Takes Steps to Minimize Risks as it Supports International Trade

Blog

Middle East Africa MA by the Numbers: Q3 2021

Blog

Banking Essentials Newsletter: November Edition 2021 - Part 2


Chinese firm invests in Nubank; IMF cuts growth forecast for Latin America

* China-based Tencent Holdings Ltd. is investing $180 million to acquire an undisclosed minority stake in Brazilian financial technology company Nubank, Reuters reported, citing statements from both companies. A person familiar with the matter told tech-focused news outlet The Information that Tencent agreed to pay $200 million for a 5% stake in Nubank.

* The International Monetary Fund lowered its global growth projection to 3.7% for the rest of 2018 through 2019, 0.2 percentage point less than its previous forecast from April, the IMF said in its latest World Economic Outlook report. "Escalating trade tensions and the potential shift away from a multilateral, rules-based trading system are key threats to the global outlook," the report said. The IMF also cut its 2018 and 2019 growth forecasts for Latin America by 0.4 percentage points each to 1.2% and 2.2%, respectively.

MEXICO AND CENTRAL AMERICA

* The IMF lowered its 2018 GDP growth forecast for Mexico to 2.2% from 2.5% previously, and cut the country's 2019 growth forecast to 2.5% from 2.7%, El Economista reported.

* Hurricane Michael caused 13 deaths in Central America over the weekend as it made its way north, Reuters reported. The Category 1 Atlantic hurricane is currently situated around 30 miles northwest of the western tip of Cuba and is expected to become a major Category 3 hurricane by Oct. 9, the U.S. National Hurricane Center said.

CARIBBEAN

* The magnitude 5.9 earthquake that hit Haiti on Oct. 6 resulted in 15 deaths and another 300 injuries, Reuters reported, citing Jerry Chandler, head of the country's civil protection agency.

BRAZIL

* Banco Bradesco SA's planned acquisition of a 65% stake in distressed asset recovery firm RCB Investimentos SA is credit positive for the bank, Moody's said. Bradesco will gain more expertise in recovering delinquent loans, which will reduce its debt collection costs and allow it to quicken its recovery process, the rating agency said.

* Brazilian markets shot sharply higher Oct. 8 following a strong showing by far-right presidential candidate Jair Bolsonaro in the country's first-round election vote. Top Brazilian equities in the Bovespa index surged 4.72% on the day with record-high volume, while the Brazilian real gained 2.63% against the U.S. dollar.

* Bolsonaro said on Twitter that he plans to cut the number of ministries and privatize state companies if he is elected, Reuters reported. Bolsonaro, who will compete for the presidency in a second-round run-off later in October, also said he is already in talks with legislators to gain support in Congress, the newswire reported separately.

* The IMF lowered its 2018 GDP growth forecast for Brazil to 1.4% from 1.8% previously, Folha de S.Paulo reported. The agency also cut its 2019 growth forecast for the country to 2.4% from 2.5%.

* Banco Santander (Brasil) SA is looking to double its share of basic education loans in Brazil from about 15% currently and diversify its investments in the sector, Reuters reported, citing Alexandre Teixeira, the head of the bank's business and corporate area.

* After nearly two years of preparation, the partners of XP Investimentos SA have launched their own cryptocurrency exchange called Xdex, Valor Econômico reported. Xdex will have a completely separate structure from XP Investimentos.

ANDEAN

* Moody's withdrew all of its ratings on Bolivia-based Banco Fassil SA, citing its own business reasons. Moody's also withdrew the bank's "b1" baseline credit assessment.

* Annual inflation in Venezuela reached 488,865% in September, while daily inflation now stands at 4%, Reuters reported, citing opposition legislator Angel Alvarado. Meanwhile, the IMF predicts that inflation in the country will soar to 1,370,000% by the end of 2018, up from a previous forecast of 1,000,000%, Bloomberg News reported.

* The International Monetary Fund raised its 2018 GDP growth forecast for Colombia to 2.8% from 2.7% previously, but kept its growth forecast for 2019 unchanged at 3.6%, La República reported.

* The IMF raised its 2018 economic growth forecast for Peru to 4.1% from 3.7% previously, Gestión reported.

SOUTHERN CONE

* Chile's central bank said the country registered a trade deficit of $122 million in September, the nation's second consecutive negative trade gap in 2018, Reuters reported.

* The Bolsa de Valparaíso stock exchange will appeal Chilean financial regulator CMF's recent decision to revoke its operating license, Diario Financiero reported. Bolsa de Valparaíso's board will present a proposal requesting a period of two years to convert the stock exchange into a new entity that focuses on small and medium-sized enterprises. The report did not provide additional details on the conversion proposal.

* Chilean Mining Minister Baldo Prokurica said the country is looking to diversify trade relations and find new markets for its key copper exports amid a trade war between the U.S. and China, Reuters reported. "Were it not for the trade war between the U.S. and China, we would have a much higher copper price," Prokurica was quoted as saying.

* The International Monetary Fund raised its 2018 GDP growth forecast for Chile to 4% from 3.8% previously, but maintained the country's 2019 economic growth estimate at 3.4%, Diario Financiero reported.

* Banco Santander Chile has decided not to renew its credit card payment processing contract with Transbank SA as the company will independently process those payments going forward, La Tercera reported.

* The IMF lowered Uruguay's GDP growth forecast for 2018 to 2% from 3% previously, but raised the country's 2019 growth projection to 3.2% from 3%, El País reported.

* The IMF now expects Argentina's economy to contract 2.6% in 2018, compared to a previous forecast for growth of 0.4%, El Cronista reported. The fund also predicts a 1.6% shrinkage for the Argentine economy in 2019, compared to a previous growth forecast of 1.5%.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: IAG, AMMB seek bids for Malaysian insurer; BNP Paribas to cut SBI Life stake

* Global Markets: Treasury yields resume climb, keeping equities on edge

Pablo Jimenez Arandia 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.