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Brazil's IPCA-15 consumer price index rose 0.58% in the month to mid-January, decelerating from previous figures but at a pace that still exceeded expectations, statistics agency IBGE said on Wednesday, Reuters reported. The monthly rise was higher than the 0.43% increase foreseen by economists in a Reuters poll but slowed from a 0.78% surge in December thanks to lower transportation prices. According to IBGE, prices rose in the remaining eight of nine groups of goods and services covered. The most significant impact came from foods and drinks, with a monthly increase of 0.97%.
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Brazilian power company Companhia Energetica de Sao Paulo (CESP) on Monday said its board of directors has approved terms of a deal with conglomerate Votorantim SA and Canada Pension Plan Investments Board (CPPIB) to merge the trio's energy assets in Brazil, Reuters reported. CESP is expected to become a full subsidiary of Votorantim and CPPI's joint venture VTRM Energia once the deal is closed. The terms of the transaction, which valued CESP at about 9.1 billion reais ($1.67 billion), were disclosed this month. The company has also scheduled a shareholder meeting for Feb.
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Argentina sharply reduced its budget deficit in 2021 as President Alberto Fernandez tries to cut down on spending amid talks with the International Monetary Fund, Bloomberg News reported. The so-called primary deficit, which excludes interest payments, fell to 3% of gross domestic product from 6.5% in 2020. The figure, boosted by proceeds from a wealth tax, was also below the economy ministry’s estimate for a 3.5% gap. Economy Minister Martin Guzman says he wants to eliminate primary fiscal deficits by 2027 as part of a deal to refinance about $40 billion owed to the IMF.
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Investors have long been confident about at least one thing in wild and unpredictable Argentine markets: A big peso devaluation was coming, and the best place to take refuge was dollar-linked bonds. Now, after piling into the trade for two straight years, they are throwing in the towel, Bloomberg News reported. They were so surprised that the devaluation didn’t come in the immediate aftermath of November congressional elections -- politically, the most logical time to do it -- that they have begun to give credence to the government’s pledge that there’s no such plan in the works.
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Local creditors of Latam Airlines Group SA are up in arms over a bankruptcy plan that would leave them with next to nothing even as holders of overseas bonds get almost all their money back, Bloomberg News reported. BancoEstado SA, a Santiago-based bank acting on behalf of local noteholders, has asked Latin America’s largest airline to improve its terms. The investors are threatening to sue if their demands aren’t meant, and contend that as a Chilean company, Latam should have filed for protection in local courts — instead of New York — that would have treated domestic creditors better.
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Annual inflation in Brazil ended 2021 at a six-year high of 10.06%, government data showed on Tuesday, well above the upper limit of the central bank's year-end target range due to surging fuel and energy prices, Reuters reported. Despite slowing from the 12 months through November, when it reached 10.74%, the rise in the benchmark IPCA consumer price index was the most for a calendar year since 2015, said IBGE, while slightly exceeding the 9.97% median forecast in a Reuters poll of economists.
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Argentine dollar bonds fell the most since September after Economy Minister Martin Guzman criticized spending cuts proposed by the International Monetary Fund, highlighting the difficulties ahead in securing a new agreement, Bloomberg News reported. Notes maturing in 2041 dropped 1 cent to 32.8 cents on the dollar, the biggest decline since Sept. 20, according to data compiled by Bloomberg. Credit-default swaps widened the most in five weeks.
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Argentine dollar bonds fell the most since September after Economy Minister Martin Guzman criticized spending cuts proposed by the International Monetary Fund, highlighting the difficulties ahead in securing a new agreement, Bloomberg News reported. Notes maturing in 2041 dropped 1 cent to 32.8 cents on the dollar, the biggest decline since Sept. 20, according to data compiled by Bloomberg. Credit-default swaps widened the most in five weeks.
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