Bradesco Buys American Express’s Operations in Brazil

Latin American stocks moved collectively higher on the day, with Brazil gaining more than 100 points and Mexican shares again reaching fresh highs. Investors in both the U.S. and Latin America will be eyeing a speech by Fed chairman Ben Bernanke later this evening.

Brazil’s Bovespa Index jumped 154.36 points, or 0.41%. Mexico’s benchmark Bolsa Index surged 235.32 points, or 1.22%, while Argentina’s Merval Index edged up 6.32 points, or 0.35%.

Brazilian issues posted solid gains, as investors were relieved that no further allegations surfaced against Finance Minister Antonio Palocci over the weekend. Also aiding local shares was a sharp drop in crude oil prices. Brazil is a net importer of oil.

On the economic front, the private Getúlio Vargas Foundation said that the General Price Index, or IGP-M, fell 0.10% in the 10 days through March 20, compared with a slip of 0.01% during the same period in February. The most recent result showed a sharper-than-expected drop in prices.

Separately, the Fipe research foundation said that its consumer price index rose 0.26% in the four weeks ended March 15, versus a 0.16% jump in the four weeks ended March 7.

In corporate headlines, Banco Bradesco SA said it will buy the local operations of U.S.-based American Express for US$ 490 million. Brazil’s largest private bank said it will acquire operations run by American Express in Brazil, including credit card portfolios and consumer credit unions.

A major investment bank initiated coverage on investment fund Bradespar at "outperform." The broker cited the firm’s "transparent valuation with low reinvestment risk" as one factor for its rating.

Mexican shares moved higher today, with the IPC Index reaching another fresh record high. In the U.S., investors are awaiting an evening speech by Federal Reserve Chairman Ben Bernanke, in which further insight into interest rates may be given.

Turning to the economy, the National Statistics Institute reported that unemployment fell to 3.6% in February from 3.8% a year ago. On a seasonally- adjusted basis, unemployment rose 0.14% in February from January.

Elsewhere, an influential investment bank raised its rating on steel firm Industrias CH SA to "buy" from "neutral," as it expects improved performance at its U.S. unit PAV Republic.

In Argentina, shares moved modestly higher, in line with broader regional gains. Local shares were bolstered by the banking sector. Meanwhile, falling crude oil prices weighed on select related stocks.

Thomson Financial – www.thomsonfinancial.com

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Industry Wants to Cut More Jobs

Brazilian entrepreneurs believe that the pace of industrial activity continues to be sluggish at ...

Minister Wants Brazil to Get Into the Habit of Holding Referenda

"I am an admirer of the referendum, because I am an admirer of democracy," ...

Lula Asks Bolivia: If Not Brazil Who’s Going to Buy Your Gas?

In yet another chapter of the natural gas struggle, Brazilian President Luiz Inácio Lula ...

New Data on Brazil’s Low Competitiveness Are Not Accurate, Says Minister

Brazil dropped eight places in the global competitiveness ranking, according to a report released ...

Brazilian Indians Demand Inquiry on Police Violence

In a massive display of solidarity about 130 representatives of 21 indigenous people in ...

Federal Prosecutor Indicts 40 Brazilian Notables Involved in Bribe-for-Vote Scandal

Brazil’s Federal Prosecution Office (Ministério Público) announced Tuesday, April 11, the indictments of 40 ...

Australia’s Loss Is Brazil’s Gain in Beef Exports

Brazil's beef exports are forecast to rise about 5% during 2009. Higher exports should ...

For Minister, 9% of Women in Brazilian Congress Is Too Little

Women’s schooling level needs to improve in Brazil. This is the conclusion drawn by ...

US Cargill Invests US$ 69 Million in Brazilian Corn Processing Plant

Cargill, a United States-based agribusiness company, which owns operations in Brazil, is going to ...