Rio de Janeiro-based electricity distributor Light SA has submitted a plan to restructure about 11 billion reais of debt, according to a securities filing late on Friday, Reuters reported. Light filed for bankruptcy protection in May, becoming the latest high-profile Brazilian firm to do so in recent months. The plan, which has yet to be approved by the lenders of the company, foresees a number of repayment and capitalization options. Light said it will seek to raise at least 1 billion reais ($209 million) of new funds as part of its reorganization plan.
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Peru's central bank expects the country's inflation rate to be higher in July versus June, which saw a contraction in prices, the head of the bank's economic studies unit said during a presentation on Friday, citing seasonal variation, Reuters reported. Adrian Armas also said that May GDP figures, set to be published on Saturday, are likely to be in the negative realm when asked by reporters, with the fishing sector having taken a notable hit.
Word that Uruguay was seeking a trade deal with China prompted exultation at El Álamo ranch, a lush expanse of grass punctuated by cactus and herds of cattle on the eastern plains of Uruguay, the New York Times reported. Most of the cattle are destined for buyers in China, where they confront tariffs of 12 percent — more than double the rate applied to meat from Australia, the largest exporter of beef to China. Ranchers in New Zealand, the second-largest exporter, enjoy duty-free access to China.
Argentines are tightening their wallets to make end meets as the South American country battles inflation which could surpass 140% on an annual basis this year, hunting for the cheapest prices on basic goods to shield their income, Reuters reported. The national statistics office INDEC is set to release the country's June inflation figure later on Thursday. Analysts polled by Reuters expect the rate of rising prices to slow to 7.0% in June from 7.8% the previous month.
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Argentina's monthly inflation rate is expected to slow to 7.0% in June, according to the median forecast in a Reuters poll, after hitting 7.8% in May, as the government battles to control spiraling prices ahead of elections in October, Reuters reported. The poll of 23 analysts measures inflation by the Consumer Price Index (CPI), with estimates ranging from 6.6% to 7.8%.
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Brazil's annual inflation in June fell to its lowest level since September 2020, data from statistics agency IBGE showed on Tuesday, renewing bets that an interest rate cut is around the corner as consumer prices continue to trend down, Reuters reported. Annual inflation in Latin America's largest economy slowed to 3.16% in June from 3.94% in May, in line with a market consensus of 3.17%. Prices fell 0.08% on a month-on-month basis, the first deflation registered since September of last year.
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President Luiz Inacio Lula da Silva's government will not wait for Brazil's Congress to finish voting on a tax reform related to consumption before submitting its proposal for an income tax reform, Finance Minister Fernando Haddad said on Monday, Reuters reported. Haddad said in an interview with podcast "O Assunto" that the planned change in income tax, a long-standing agenda item for Lula's leftist Workers' Party, represents a crucial element of the government's plans to zero its primary budget deficit next year.
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A U.S. court of appeals on Friday rejected Venezuela's bid to prevent six companies from joining a proposed court auction of shares in a Citgo Petroleum parent to enforce judgments for past expropriation of assets, Reuters reported. The decision allows the six to move ahead with their about $3 billion in combined claims against Venezuela state oil firm PDVSA in a Delaware federal court. That court is in the initial steps of preparing an auction as soon as September.
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Brazil's currency will likely enjoy some support in the near term from faster economic growth and progress on reforms, despite the prospect of less favorable interest rate spreads ahead, a Reuters poll showed, Reuters reported. The real appreciated last month to its firmest level in a year after several forecasts were improved and key fiscal changes proposed by the government of President Luiz Inacio Lula da Silva made headway in congress. The real is seen gaining a further 0.6% in three months to 4.81 per U.S.
A pair of central bank decisions next week will shape the outlook for a wobbly global economy that the World Bank warns in a downbeat new assessment is battling stubbornly high inflation amid the pandemic’s aftermath and the war in Ukraine, the Washington Post reported. The gloomy forecast arrives days after one threat to global growth was eliminated when President Biden signed legislation Saturday to raise the U.S. debt ceiling and avert a potentially catastrophic government default.