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Most Brazilian bank employees accept wage proposal; CME cuts stake in BM&FBOVESPA


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Most Brazilian bank employees accept wage proposal; CME cuts stake in BM&FBOVESPA

* CME Group Inc.sold 28 million of its shares in BM&FBOVESPASA – Bolsa de Valores Mercadorias e Futuros, reducing its in the Brazilian stock exchangeoperator to 2.4% from 4.0%. This sale does not change the terms of the strategicpartnership between the two companies involving cross listing products and technologicalcooperation, BM&FBOVESPA said.

* Sindicato dos Bancários de São Paulo, Osasco e Região, Brazil'slargest banking industry union, said employees at private lenders and state-runBanco do Brasil SA acceptedan offer for an annual wagehike of 8%, ending a monthlong strike, Reuters reported. However, workers atstate-run Caixa Econômica Federalrejected the proposal and remain on strike.


* UNIFINFinanciera SAB de CV SOFOM ENR said it saw a roughly 86.2% take-up onits tender offer to repurchaseall of its outstanding 6.250% senior notes due 2019. As of the tender offer's Oct.5 expiration date, the company received valid tenders and consents worth about $316.0million, including around $311.9 million worth of notes tendered during the earlytender period.

* Fitch Ratings loweredits 2016 and 2017 growth forecast for Mexico, warning that the economy could sufferfurther if the U.S. pushes through with post-election protectionist policies. Therating agency now expects Mexico's economy to grow 2.0% in 2016 and 2.6% in 2017,down from previous estimates of 2.4% and 2.8%, respectively.

* Mexico's consumer confidence index declinedto 84.1 in September from 86.5 in the previous month, Bloomberg News reported, citingthe national statistics institute. "The drop in confidence is probably relatedto the recent deprecation of the peso," said Barclays Plc's chief economist for Mexico, Marco Oviedo.

* Banco CompartamosSA Institución de Banca Múltiple said it issued 2.5 billion Mexicanpesos worth of notes,with demand reaching 3.3x the amount offered, Reuters reported.

* S&P Global Ratings placed its B+ long-term and B short-termforeign and local currency sovereign credit ratings on El Salvador on CreditWatchwith negativeimplications. The placement reflects the country's deteriorating financial management,reflected in a weakening of the government's ability to gain access to liquidity,due to heightened political polarization.

* Mexican financial technology firms are confident that the governmentwill present draft regulationsfor the sector before the end of 2016, ElEconomista reported. The rules were initially expected to be released in earlySeptember as part of the 2017 economic package, but those plans were delayed.

* The overall delinquency rate for Mexico's banking sector was2.42% in August, unchanged from the previous month but down from 2.95% a year earlier,El Economista reported,citing data from banking and securities commission CNBV.


* A committee in Brazil's lower house of Congress voted23-7 in favor of approving a proposalto limit increases in public expenditure to the country's inflation rate, Reutersreported. The full chamber will vote on the measure early next week.

* Brazilian Finance Minister Henrique Meirelles said the country'seconomy is still poised for a recoverydespite a recent decline in industrial output and an increase in unemployment, Reutersreported. "In a recovery, you usually have ups and downs, but the median iswhat matters," the minister said, reiterating his forecast for 1.6% GDP growthin 2017.

* While Banco BMGSA's recent deal to sell its 40% stake in a payroll lending joint ventureto partner Itaú Unibanco Holding SAwill benefit BMG's capital ratios in the short term, it also poses a longer-termstrategic challengefor the bank since the venture represented "a solid dividends stream,"Euromoney reported, citing an unnamed fixed income analyst.

* Large banks in Brazil will have littleinterest in replacing Banco do Brasil SA as the national postal service's newbanking partner, according to public and private bank executives interviewed byValor Econômico. A banking services agreementbetween the postal service and the bank is set to expire in December, but the postoffice is asking for a very high price in a bidding process to select a new partnerat a time when the banking sector is stagnant, the executives said.

* Savings withdrawals in Brazil outpaceddeposits by about 2.35 billion reais in September, bringing year-to-date net withdrawalsto about 50.54 billion reais, Diário ComércioIndústria & Serviços reported, citing data from Banco Central do Brasil.


* Banco FalabellaPerú SA said it will pay about 5.78 million Peruvian soles in dividendsfor full year 2015, corresponding to about 1.24 céntimos per share, on Oct. 26.


* Chubb Ltd.said it appointed MarianoLopardo CFO for its operations in Argentina. Lopardo will report directly to FernandoMéndez, country president of Chubb Argentina, and William Stone, senior vice presidentand CFO for Latin America.

* The Argentine government is finalizing the details for a capitalmarket reformand will send it to Congress in the coming days in hopes of securing approval beforethe end of 2016, El Cronista reported.The reform seeks to allow advisors from international private banks to operate inthe country and prevent double taxation for closed funds, among other things.

* Banco SantanderChile unveiled a new branchmodel in order to improve customer service and boost its digital offerings,Diario Financiero reported. Under theinitiative, the bank's branches will be reconditioned to include cafeterias andnetworking areas, and will also offer internet access.

* Based on the success of Argentina's recent euro-denominatedbond issuance worth €2.5 billion, economists at Goldman Sachs Group Inc. believe the country will probablyseek morefunding in European markets in order to address its fiscal deficit, El Cronista reported.


* Global economiclosses from tropical cyclone landfalls in September could reach morethan $4.2 billion, according to the latest global catastrophe report from Aon Benfield'sImpact Forecasting. Hurricane Newton made landfall in northeastern Mexico, causingmore than $10 million in economic losses and damaging approximately 3,500 homes.

* At a World Bank event in Washington, finance ministers fromLatin American countries said they will push forward with attempts to bolster tiesbetween the region's economieseven though isolationist policies are on the rise elsewhere in the world, BloombergNews reported.


* Asia-Pacific: Goldmanbuys Postal Savings Bank shares; RBI eases interbank loan norms

* Middle East & Africa: Bank Hapoalim raises provisions; Emirates Islamic launches rights issue

* Europe: Commerzbankto shed i-bank; Delta Lloyd shuns NN; Asya shops insurance units

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.

Paula Mejia contributedto this article.

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