ARGENTINA-- Unemployment Seen Falling: Unemployment figures should fall by
1% by May 97, beginning to reflect rapid growth in industrial output, Econ
Min Fernandez said yesterday. According to Fernandez, industrial output is
now at an annual rate of 10% per year, and projected a =93conservative=94=
1997
GDP growth figure of 5%, adding that every three points in GDP growth would
result in one point of unemployment decline./////
5-yr Peso on the Table: Econ Min Fernandez yesterday said Argentina was
considering a 5-yr peso bond issue. The bond is being considered under the
perception that such an issue would demonstrate Argentina=92s confidence in
the peso to the int=92l market, he said. The issue will be over $300mn, and
carry a yield of at least 250bp over US T-bills. Fernandez said it is
unnecessarily expensive for Argentina to place peso debt because of an
unfair risk rating assigned the country. He is in London this week to
wrangle with top bankers for a re-evaluation. /////
BRAZIL--Cellular Rules Published: Rules for opening of Band B cellular
services to the private sector were published yesterday. Under the rules,
concessions will be valid for 15 years and are renewable. The country will
be divided into two sections, the undeveloped south and southeast and the
more developed central/north area. Ten regional concessions will be
offered, and participating consortia will be limited to one concession per
section. Interconnection rules were also established. /////
Export Figures Skewed by Bungling: A computer crash yesterday caused the
last days of October=92s trade figures to be lost, but this will be offset=
by
the inclusion of Sept figures that were mistakenly omitted by customs
officials last month. The figure is placed at $4.188bn so far, but no import
figures have yet been released. Industry union CNI says Brazil=92s trade
deficit problem is caused by gov=92t foot dragging in the promotion of
export-boosting measures./////
Civil Servants to Strike: Civil servants will strike on Nov 27 and Dec 1,
hoping to obstruct the passage of the Administrative Reform bill. The bill,
which was given lower house approval on Oct 23 (DBUL Oct 23), would
eliminate 25,000-30,000 jobs thru voluntary retirement packages. The bill
is expected to pass, but not before the Nov 15 municipal elections./////
CHILE-- Inflation Up 5.8%: Inflation rose 5.8% in the ten months to Oct,
opposed to 7% in the same period last yr, the Nat=92l Statistics Institute
(INS) said yesterday. The Oct figure also brings 12-month inflation to 6.2%
opposed to 8.8% in Oct 95, and in line with yr-end targets. INS also said
industrial production was up 1.4% YoY.//////
COLOMBIA--Foreign Funds Raise Ante: The 174 foreign funds authorized to
operate in Colombia invested $1.02mn more in Sept, making the invested total
16.9% higher than in Sept 95, said Colombia=92s securities and exchange
commission./////
Cal=ED Escapes Car Bomb: Police defused a 360 lb car bomb found in Cali,
allegedly placed by drug traffickers as a message against passing
extradition laws. A senate panel broke Colombia=92s long holdout over these
laws, approving a bill to allow it./////
MEXICO--Port Terminal Auction Seen by Tear-End: Mexico for the 2nd time
will offer a 25-yr, exclusive concession to operate the Puerto Vallarte port
terminal, said Puerto Vallarte=92s port authority. In the 1st attempt last
Dec., TMM won the bids for both Acapulco and Puerto Vallarte, but under
competition laws, the company was forced to give one up.
PERU--Brady Deal, Paris Club Ready To Close: Peru on Fri will at last sign
an agreement with creditor banks to close it $10.657bn Brady restructuring
accord. The deal will be formally closed Dec 20. The accord will reduce
Peru=92s total commercial debt to $5bn, and the gov=92t said 30% of the=
Brady
deal would be covered by a planned buyback of $1.2bn in interest and another
$1.2bn in principal.
Market News: Brazil was boosted by the publication of Band B cellular
rules. Chile closed down in thin volume as foreign interest concentrated on
US presidential elections. Colombia ended flat in mixed trading with volume
boosted by one broker who, with the intention of selling 3,000 shares in
Banco de Colombia, mistakenly added six extra zeroes to the transaction. A
rival brokerage immediately snapped up 1.5mn of them.. Mexico rallied as
the CB lowered interest rates on most certificates, leading to expectations
of further declines. A rise in the Dow also bolstered the market.
5-Nov
Argentina Brazil Chile Colombia Mexico Peru Venezuela
market close 17051.40 66975.89 97.80 871.73 3285.95 1483.55 5786.21
mkt % chg, local 0.41% 0.59% -0.19% -0.07% 1.18% -1.12% -2.14%
currency in USD 1.00 1.038 421.10 1006.00 7.91 2.56 471.00
currency % change 0.00% 0.00% -0.18% 0.00% -0.19% 0.00% =
0.00%
mkt % chg, USD 0.41% 0.59% -0.37% -0.07% 0.99% -1.12% -2.14%
5 day % chg, USD 1.84% 1.05% -1.75% -0.04% 2.85% -3.13% -4.07%
......................................................
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