* Policymakers at Chile's central bank voted unanimously to lower its monetary policy interest rate by 50 basis points to 2.0%. The bank pointed to a worsening of the external scenario, specifically rising trade tensions between the U.S. and China and the increased likelihood of a no-deal Brexit. Domestic economic activity and growth in demand were both below expectations in the second quarter, it added.
* Sul América SA said Swiss Re Direct Investments Co. Ltd. divested its entire stake in the Brazilian insurer by selling 58,764,180 Sul América units. As a result, the 2013 shareholders' agreement between Swiss Re and Sul América's controlling shareholder Sulasapar Participacoes SA was terminated. Swiss Re sold its stake for about 2.6 billion reais, according to Valor Econômico.
* Caixa Econômica Federal CEO Pedro Guimarães said the bank plans to proceed with an initial public offering for its insurance unit, Caixa Seguridade Participações SA, in 2019 despite regulatory hurdles, Reuters reported. However, he said the IPO of card unit Caixa Cartões would be delayed until 2020 as it "doesn't make sense" to carry out two offerings of such volume simultaneously.
* Itaú Unibanco Holding SA co-Chairman Roberto Setubal said the bank will survive the "moment of great transformation" Brazil's financial sector is going through, alluding to the emergence of more competition in the banking space, Valor Econômico reported. Itaú strengthened its wealth management business with the hiring of eight new managers, the publication reported separately. Meanwhile, Itaú CEO Candido Bracher said he sees "some room" to shutter branches to control costs, Reuters reported.
* Brazil's stock market has at least 14 share offerings in the pipeline starting from the week of Sept. 9, including eight initial public offerings, Valor Econômico reported. The sales are expected to generate about 25 billion reais.
* Brazil's stock market saw 10.79 billion reais of net foreign capital outflow in August, the highest monthly withdrawal since 1996, Valor Econômico reported, citing data from stock market operator B3. Analysts say foreign capital is unlikely to enter the Brazilian market in the short term due to fears of a global recession and the U.S.-China trade war.
* BRB-Banco de Brasília SA said it struck a partnership agreement with card processor Cielo SA to "complement the portfolio of products offered by the bank to its corporate clients," Reuters reported.
* Fitch Ratings upgraded Argentina's long-term foreign and local currency issuer default ratings to CC from restricted default following the country's payment of short-term debt instruments on Aug. 30. Argentina's long-term ratings reflect the rating agency's expectation that a further default or debt restructuring remains probable.
* BTG Pactual Chile SpA and BTG Pactual Chile Servicios Financieros SA agreed to sell 100% of BTG Pactual Chile SA Compania de Seguros de Vida's share capital for 1.8 million unidad de fomento, Chile's inflation-indexed unit that was worth 27,996.69 Chilean pesos as of Sept. 2. Holding company DT Rigel SA is acquiring a 99.99999% stake in Compania de Seguros de Vida while Vitacura Dos is buying the remaining one share. The transaction is expected to close within 240 days, subject to regulatory approvals.
* Morgan Stanley and Merian Global Investors expect distressed-debt investors to start focusing on Argentina's overseas bonds when they start trading at 30 cents on the dollar, Bloomberg News reported. The notes are currently trading at approximately 38 cents on the dollar.
* Economists polled by Argentina's central bank raised their inflation forecast for 2019 to 55% from 40% previously, Reuters reported. They also revised their 2019 economic growth forecast to a 2.5% contraction from a 1.4% shrinkage previously.
* Chilean Finance Minister Felipe Larrain said current foreign exchange market conditions do not warrant central bank intervention to support the local peso currency, Reuters reported. "That's a decision that the central bank would need to take if and when those scenarios take place, and we haven't gotten there yet," he said.
* The Argentine peso closed 5.39% higher on Sept. 3 at 55.98 pesos per U.S. dollar, recovering from a record-low close on Aug. 30, Reuters reported. Argentina's S&P Merval stock index, however, closed 11.9% lower amid global trade apprehensions.
* Middle East & Africa: France plots $15B credit line for Iran; South Africa averts recession in Q2
* Europe: UK lawmakers poised to stop no-deal Brexit; RBS' PPI woes; KBC to cut 1,400 jobs
Pablo Jimenez Arandia contributed to this article.
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