* Paraguay's central bank cut its monetary policy interest rate by 25 basis points to 4.25%, citing slower economic growth and reduced inflationary pressures. The central bank pointed to a complex economic panorama in Latin America, adding that several indicators suggest economic activity in Paraguay declined during the first half of 2019.
* Fitch Ratings revised Ecuador's outlook to stable from negative, citing developments that have helped mitigate near-term sovereign financing risks, including a $4.2 billion funding deal with the International Monetary Fund. The IMF program "remains on track" and has provided "an anchor for fiscal consolidation and structural reforms," the rating agency said.
* Fitch Ratings revised its outlook on Suriname to negative from stable, citing an increased government debt-to-GDP ratio due to large fiscal deficits stemming from rising financing needs. The country's May 2020 elections may lead to an increase in government debt, and uncertain financing options add further to downside risks, the rating agency said.
MEXICO AND CENTRAL AMERICA
* Financial technology firms in Mexico will boost financial inclusion and big banks' investment appetite for such companies, Moody's said. However, fintechs are unlikely to displace big banks in the near future as they find market share in the large segments of unbanked and underbanked populations, which are targeted less by traditional lenders.
* Mexican central bank Governor Alejandro Diaz de Leon said consumption in the local economy could still rebound despite recent figures indicating a slowdown, Reuters reported. "Regarding the global economy, growth expectations in a wide range of countries have been reduced in recent quarters," he said at an event. "We are in a world where, although labor markets are strong, growth is weakening and inflation is much lower than expected."
* Brazilian financial technology firm Nu Pagamentos SA, which earlier this year announced its arrival in Mexico, is now set to launch an international credit card in Mexico with the backing of Mastercard, El Economista reported.
* Costa Rica's central bank said it plans to issue 450.00 billion colones of debt in the local market during the next four months to refinance upcoming debt maturities, El Financiero reported.
* Banco do Brasil SA said Brazil's federal government has indicated a desire to sell those shares in the bank that it does not need to retain control of the company. The government is thinking about selling 20,785,200 Banco do Brasil shares, although a final decision has not been made yet. The federal government currently holds a direct stake of 52.16% in the bank, according to S&P Global Market Intelligence data.
* Brazilian central bank chief Roberto Campos Neto said the benchmark Selic rate, which was recently cut to a record-low 6.00%, could fall further due to the balance of economic risks and persistently low inflation, Reuters reported. A delay in the passage of economic reforms could increase inflation and the risk premiums, he said.
* Cielo SA said its board approved a repurchase program for up to 400,000 common shares to meet commitments made by the company under its compensation, retention and incentive programs with employees. The program will run from Sept. 2 to Sept. 10.
* Banco Agibank SA is investing 15 million reais to open 100 new customer service points in cities with more than 50,000 residents, Valor Investe reported. The bank also plans to hire 400 more employees by the end of 2019.
* Eduardo Guardia, the CEO of BTG Pactual Asset Management and Brazil's former finance minister, said lower interest rates in the country will bring "profound changes" to the market, including more demand for equities and greater risk appetite among investors, Estadão reported. He also said a worsening global economic outlook will have little to no impact on growth in Brazil, Valor Econômico reported.
ANDEAN
* Grupo Aval Acciones y Valores SA expects its exposure to the scandal-laden Ruta del Sol II highway project to be "quite impactful" on results for the remainder of 2019, CFO Diego Fernando Solano Saravia said on the company's second-quarter earnings call. Grupo Aval is preparing to provision 380 billion Colombian pesos due to ongoing litigation related to the project, CEO Luis Carlos Sarmiento Gutiérrez said.
* Proposed reforms aimed at attracting new investors to Colombia's capital market risk being delayed as President Ivan Duque struggles to gain legislative support in Congress, Reuters reported, citing comments from experts and executives. An independent commission recently recommended more than 60 reforms to boost the local market, including proposals to streamline regulations for the financial sector.
* Struggling Peruvian bank Banco Agropecuario resumed lending to farmers in the first seven months of 2019, disbursing more than 55 million soles during the period to more than 8,000 small-scale producers, Gestión reported.
SOUTHERN CONE
* Argentina's international reserves have fallen by $7.40 billion since primary presidential elections on Aug. 11, El Cronista reported, citing the central bank. In the election, opposition candidate Alberto Fernández emerged as the frontrunner for president after defeating incumbent Mauricio Macri by a wider-than-expected margin. Meanwhile, Argentine banks have hiked their lending rates for companies to reflect a sharp rise in the central bank's reference Leliq rate since the primary election, the publication reported separately.
* Scotiabank Chile plans to launch a pre-paid digital payment card in 2020 as it looks to originate 25% of total retail segment revenue from digital banking next year, Diario Financiero reported.
IN OTHER PARTS OF THE WORLD
* Asia-Pacific: Goldman Sachs China JV; Ping An deal talks; Srisawad Finance fine
* Middle East & Africa: H1 profits fall at some of Angola's biggest banks; Zambia holds rate
* Europe: No-deal Brexit base case; BNP Paribas, HSBC, StanChart 'victims' of Huawei
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.
