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Tropical Storm Nate kills 22; Old Mutual mulls sale of LatAm units

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Tropical Storm Nate kills 22; Old Mutual mulls sale of LatAm units

* Tropical Storm Nate hit Central America and has killed at least 22 people in Nicaragua and Costa Rica, the Associated Press reported. It is now headed toward Mexico's Yucatán Peninsula, the National Hurricane Center said in its 5 am ET advisory.

* Anglo-South African financial group Old Mutual Plc could sell its subsidiaries in Mexico, Colombia, Uruguay and China as part of the planned breakup of its four units, Group CEO Bruce Hemphill told Reuters.

MEXICO AND CENTRAL AMERICA

* Scotiabank de Costa Rica SA plans to auction commercial papers for up to 10 billion Costa Rican colones on Oct. 12. The securities will be issued Oct. 13, and will expire on Oct. 12, 2018.

* Crédito Real S.A.B. de C.V. Sociedad Financiera de Objeto Múltiple E.R. issued 300.0 million Mexican pesos of local unsecured notes under a revolving debt program for up to 7.50 billion pesos. Additionally, the company said it completed the full amortization of 250.0 million pesos of short-term notes that were issued in April.

* The Mexican gross fixed investment index fell 2.1% in July, the worst result in the three previous months and the second consecutive decrease, El Financiero reported, citing the country's statistics agency INEGI.

* Pension spending in Mexico is expected to grow more than tax revenues in 2018, in a challenging scenario for the government, El Economista reported, citing Finance Minister José Antonio Meade. Estimates indicate a 5.2% increase in the budget for pensions, while tax revenues will rise 2.1%.

CARIBBEAN

* The overall financial toll from each of hurricanes Irma and Maria are expected to be in the tens of billions of dollars, Aon Benfield's Impact Forecasting said in its latest global catastrophe report.

BRAZIL

* The board of directors of Postalis Instituto de Previdência Complementar appealed against the intervention of Brazilian watchdog Previc, claiming that the decision was secretive and fund managers were not given a chance to explain their side, Valor Econômico reported.

* Brazilian economist Paulo Nogueira Batista Junior was removed as executive vice-president of the New Development Bank of the BRICS nations composed of Brazil, Russia, India, China and South Africa, sources told Valor Econômico.

* Deposits in Brazil surpassed withdrawals in September by 3.65 billion reais, marking the fifth consecutive month with this positive trend, Banco Central do Brasil said in a report. The net deposit amount is the highest recorded for the month of September since 2013, when the positive balance was at 6.70 billion reais, Diário Comércio Indústria & Serviços reported.

* Brazil's consumer default rate in September declined 12.1% year over year and fell 7.1% from the previous month, according to data from credit research firm Boa Vista SCPC. For the accumulated year, consumer delinquency contracted 2.0% annually, while for the rolling 12 month-period through September, the indicator declined 2.6% year over year.

* Brazil's Finance Minister Henrique Meirelles believes lawmakers will vote on pension reform in November, Diário Comércio Indústria & Serviços reported. Meirelles said the reform "has been under discussion in Congress for a long time" and "is essential for the sustainability of the Brazilian public system and tax system."

* The Brazilian Senate passed a bill that offers more discounts to taxpayers to help them repay overdue debts in monthly installments, which will result in the government losing about 3 billion reais in revenues in 2017, Reuters reported. The country is supposed to earn 8.8 billion reais in revenues through the program in 2017.

* The Secretary of the Treasury of the Brazilian state of Rio Grande do Sul, Giovani Feltes showed support for the sale of minority positions in Banco do Estado do Rio Grande do Sul SA to bring relief to the state's coffers, Valor Econômico reported. Feltes said the Brazilian bank's share offer is expected to be completed in December.

* Itaú Unibanco Holding SA is revising its projection for the Brazilian benchmark Selic rate for the end of the cycle to 6.5% from 7%, Diário Comércio Indústria & Serviços reported.

* In a strategy to boost profit in 2018, the five largest Brazilian banks plan to search for non-account holders, with the idea of increasing credit supply to potential customers with clean payment history, as earnings are feared to be affected by lower interest rates and a sluggish credit recovery, Diário Comércio Indústria & Serviços reported.

ANDEAN

* Fitch Ratings assigned BBB long- and F3 short-term foreign and local currency issuer default ratings on holding company Intercorp Financial Services Inc. The ratings reflect the business and financial profiles of Intercorp Financial's subsidiaries.

* A board member for Colombia's Banco de la República, Adolfo Meisel, said the bank might cut interest rates in 2018 if the inflation rate moves towards 3%, according to a Reuters report carried by Nasdaq. "If inflation (expectations) are solidly approaching 3 percent by the end of 2018 I would think there would be a possibility of additional cuts next year," Meisel noted.

* Peru recorded a trade surplus of $433 million in August, more than the surplus of $90 million posted in the year-ago period, Reuters reported, citing Banco Central de Reserva del Perú.

SOUTHERN CONE

* Brazilian investments in Argentina have doubled in the period between January and August 2017 compared to the whole period of 2016, going to $307 million from $150 million, El Cronista reported. The amount also exceeds the average of $220 million per year registered between 2013 and 2016, according to data from the Argentine and Brazilian chambers of commerce.

* Banco Central de la República Argentina has issued 110 billion Argentine pesos to provide assistance to the Argentine Treasury, getting closer to the 150 billion pesos limit set by the agency, El Cronista reported.

* Argentina's Ministry of Finance is expected to close the 2017 financial program with euro issuances worth $2.60 billion and dollar issuances worth $ 2.00 billion to be placed in the local market, La Nación reported.

PAN LATIN AMERICA

* PayPal Holdings Inc. and Mastercard Inc. are expanding their partnership into Latin America and the Caribbean, Canada, Europe, and the Middle East and Africa. Under their partnership, PayPal Wallet can use Mastercard's tokenization services for in-store purchases, and Mastercard will be an option in stores that process payments via PayPal's Braintree.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: MS&AD Insurance to buy UK insurer stake; Mastercard to invest in India

* Middle East & Africa: Saudi Arabia rethinks reforms; Kenya extends Chase Bank receivership

* Europe: Banks leave Catalonia; Old Mutual to focus on Africa; Italy objects to NPL rules

Mariana Aldano 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.