Lula Boosts Brazil Market by Giving Finance Minister Unreserved Backing

    Latin American stocks gained ground, with Mexican shares posting some of the region’s biggest gains amid optimism about the local economy. Gains in Brazil’s market were limited by profit taking following robust gains in recent sessions.

    Brazil’s Bovespa Index added 15.37 points, or 0.05%. Mexico’s benchmark Bolsa Index rose 90.05 points, or 0.55%, while Argentina’s Merval Index added 2.91 points, or 0.18%.

    Brazilian stocks edged up slightly, as a move to take some profits following recent strong gains offset the positive impact of indications that Finance Minister Antonio Palocci will remain in office.

    President Luiz Inácio Lula da Silva said today in a nationally broadcast press conference that Palocci will continue in his role as finance minister regardless of recent press reports suggesting that he would step down.

    "I want to reaffirm here that Minister Antonio Palocci has my full confidence. Palocci is and will continue to be my finance minister," he said.

    Rumors had mounted in recent weeks that Palocci would resign amid allegations of corruption in his formal mayoral administration and attacks from fellow Workers’ Party members over his austere fiscal policy. In testimony before congress earlier this week, Palocci defended his policies and denied the corruption allegations.

    In other political news, President Lula said he would wait until March or April to decide whether to seek a second term in next year’s general election. A long-running corruption scandal has cast doubt on whether Lula would be successful in a second election.

    In economic reports, São Paulo’s Fipe research institute said that its consumer price index rose 0.53% in the four weeks ended November 15, compared with a 0.59% jump in the four weeks ended November 7.

    On the corporate front, Petrobras announced that the Brazilian government plans to launch a US$ 99 million program to train 70,000 new employees in the energy sector through the end of 2007.

    Meanwhile, Embraer announced that it will deliver 145 aircraft in 2006 and 150 craft in 2007. The company added that the percentage of sales from the ERJ-170 and ERJ-190 series will top 70% from 2006, due in part to growing demand and order cancellations for smaller jets.

    Sugar and ethanol company Cosan SA said it will use the money raised from its initial public offering to expand production capacity and acquire other plants. Cosan raised 770.2 million reais through the sale of 16.04 million shares on the Bovespa.

    Elsewhere, Mexican shares climbed, hitting a third straight record closing high, amid declining local interest rates and continued optimism about the overall health of the economy.

    Investors were cheered by some positive economic news on Wednesday, when Mexico’s Finance Ministry reported that the economy grew 3.3% in the third quarter, slightly above market forecasts. The news was well received following Mexico’s disappointing economic growth in the first half of the year.

    Meanwhile, Argentine issues posted modest gains amid continued hopes for a sustained economic recovery following upbeat economic data earlier this week. Reports this week on September economic growth, October industrial production and third-quarter unemployment were all better than expected.

    Bank stocks largely ignored a new measure announced by the central bank late yesterday that conditionally allows financial institutions to defer losses related to court rulings that order them to return savers’ deposits in original dollars rather than devalued pesos.

    Thomson Financial Corporate Group – 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 family who gets the family voucher

    Brazil’s Family Voucher Program Is in Need of an Overhaul

    In Brazil, with senator Calheiros’ scandal still hanging over it, an increasingly tarnished Lula ...

    Arab-Brazilian summit

    Summit Between Arabs and Brazil & South America to Discuss Education and Tourism

    The League of Arab States' secretariat-general has set up a committee especially dedicated to ...

    What Brazil Can Teach the World

    We need to start looking elsewhere for ideas. This means rejecting the assumption that ...

    Brazil’s Per Capita Income Tumbles from 41% to 28% of First World’s Take

    Brazil has made great advances in growth and productivity performance and stability but macroeconomic ...

    Opposition’s Presidential Candidate in Brazil Gets Boost from Poll

    The latest public opinion poll shows support for Brazilian President Luiz Inácio Lula da ...

    O Globo's front page celebrating Brazil's victory against Japan

    World Cup: Now Is the Winter of Brazil’s Discontent

    Watching two old men playing chess in a park would have been more exciting ...

    Brazil’s Embraer Has New Head of Corporate Aviation

    Brazilian aircraft manufacturer Embraer today announced the appointment of LuÀ­s Carlos Affonso as its ...

    Moroccan Foreign Minister, Mohamed Benaí¯ssa, on visit to Brazil

    Morocco Believes Brazil’s Technology Can Help Africa and Arab Countries

    The importance of cooperation between developing countries is part of the vision of the ...

    Families protest against TAM

    Families of Plane Crash Victims in Brazil Accuse Government of Insensitivity

    In São Paulo, relatives of the victims of Brazil's latest and deadliest air accident ...

    Brazil’s Varig: What an Airline Shouldn’t Be

    In nearly eight decades of operation in the country, Brazilian civil aviation has been ...