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Chile cuts 2019 growth forecast; Mastercard stops servicing 2 Venezuelan banks

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Chile cuts 2019 growth forecast; Mastercard stops servicing 2 Venezuelan banks

* Banco Central de Chile lowered its economic growth forecast for 2019 to between 2.25% and 2.75% from a previous range of 2.75% to 3.5%, saying that an expected increase in growth in the second half will not be enough to offset sluggish performance in the first half. The move came just a day after the central bank cut its benchmark interest rate by 50 basis points to 2.0% and signaled that it could relax policy further.

* Mastercard Inc. has stopped providing credit card services to state-run Venezuelan banks Bank of the Armed Forces and Banco Agrícola de Venezuela due to U.S. sanctions against President Nicolas Maduro's regime, Reuters reported. "#Mastercard should know that its arbitrary action will not intimidate us," Bank of the Armed Forces President Dario Baute said on social media.

MEXICO AND CENTRAL AMERICA

* Mexican banking and securities commission CNBV has lost about 20% of its employees due to wage cuts by President Andrés Manuel López Obrador's administration and could see more resignations as the government mulls a law to restrict individuals' entry into the private sector after work at public regulatory bodies, El Financiero reported.

BRAZIL

* A Senate constitutional affairs committee in Brazil approved President Jair Bolsonaro's pension reform bill in an 18-7 vote, signaling the legislation's easy passage through the full Senate, Reuters reported. The overhaul is expected to save the federal government about 1 trillion reais over the next 10 years.

* Brazilian President Jair Bolsonaro accused former Chilean President Michelle Bachelet of "meddling" in Brazil's domestic affairs after Bachelet condemned rising police violence and weakening democracy in the country, Reuters reported. Bachelet is currently serving as the UN's high commissioner for human rights.

* Brazilian broker Warren will start offering investment advisory services through its digital platform from Sept. 13, Valor Econômico reported. The company has hired 47 consultants to provide the new service.

* Brazilian securities commission CVM has sanctioned Unick Forex and its directors for the public issuance and distribution of securities without regulatory authorization, Valor Econômico reported.

* Banco Bradesco SA CEO Octavio de Lazari said Brazilian companies are unlikely to seek bank loans as long as the country's growth prospects remain dim, Estadão reported. The executive expects individual credit to keep growing in the low double-digits, but forecasts "poor" growth in credit to companies.

* Brazilian private insurance regulator Susep will ask the government to consider the privatization of unemployment insurance, Diário Comércio Indústria & Serviços reported. Susep chief Solange Vieira said unemployment insurance in the private sector "could certainly be more efficient than the government, which is already strangled."

SOUTHERN CONE

* FTSE Russell is due to review Argentine equities for upgrade to emerging market status from frontier status, but the government's recent decision to impose currency controls jeopardizes the possible upgrade, Reuters reported, citing emerging market professionals. FTSE Russell will disclose its decision Sept. 26.

* Markets in Argentina remained steady on Sept. 4 even as thousands of demonstrators took to the streets to protest against economic measures announced by President Mauricio Macri's administration, Reuters reported. The Argentine peso ended the day flat at 56.02 pesos per U.S. dollar.

* Some of Argentina's largest foreign creditors held informal talks this week to discuss President Mauricio Macri's plan to extend the maturity of more than $100 billion of debt, the Financial Times reported. The creditors, including T Rowe Price, Eaton Vance and GMO, concluded that any debt agreement would need support from Alberto Fernández, who emerged as the presidential frontrunner in recent primary elections.

IN OTHER PARTS OF THE WORLD

* Asia-Pacific: China joins JPMorgan indexes; Australia IPOs; Moody's Indian bank rating actions

* Middle East & Africa: BlackRock opens Saudi office; KCB sets National Bank of Kenya takeover in motion

* Europe: Danske reshuffles management; Nordea names CEO; CYBG sees extra £450M PPI charge

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.