While 67% of U.S. adults support marijuana legalization, public knowledge about cannabis is low. A third of Americans think hemp and marijuana are the same thing, according to the National Institutes of Health, and many people still search Google to find out whether cannabidiol – a cannabis derivative known as CBD – will get them high, as marijuana does.

Hemp, marijuana and CBD are all related, but they differ in significant ways. Here’s what you need to know about their legality, effects and potential health benefits.

Hemp, Marijuana and Cannabinoids

Both hemp and marijuana belong to the same species, Cannabis sativa, and the two plants look somewhat similar. However, substantial variation can exist within a species. After all, great Danes and chihuahuas are both dogs, but they have obvious differences.

The defining difference between hemp and marijuana is their psychoactive component: tetrahydrocannabinol, or THC. Hemp has 0.3% or less THC, meaning hemp-derived products don’t contain enough THC to create the “high” traditionally associated with marijuana.

CBD is a compound found in cannabis. There are hundreds of such compounds, which are termed “cannabinoids,” because they interact with receptors involved in a variety of functions like appetite, anxiety, depression and pain sensation. THC is also a cannabinoid.

Clinical research indicates that CBD is effective at treating epilepsy. Anecdotal evidence suggests it can help with pain and even anxiety – though scientifically the jury is still out on that.

Marijuana, containing both CBD and more THC than hemp, has demonstrated therapeutic benefits for people with epilepsy, nausea, glaucoma and potentially even multiple sclerosis and opioid-dependency disorder.

However, medical research on marijuana is severely restricted by federal law.

The Drug Enforcement Agency categorizes cannabis as a Schedule 1 substance, meaning it handles cannabis as if there is no accepted medical use and a high potential for abuse. Scientists don’t know exactly how CBD works, nor how it interacts with other cannabinoids like THC to give marijuana its added therapeutic effects.

Retail CBD

CBD comes in food, tinctures and oils, just to name a few. Here are some commonly used terms used to describe CBD products in the store.

While the terms “CBD tincture” and “CBD oil” are often used interchangeably, the two are actually different. Tinctures are made by soaking cannabis in alcohol, while oils are made by suspending CBD in a carrier oil, like olive or coconut oil.

“Pure” CBD, also called “CBD isolate,” is called that because all other cannabinoids have been removed. So have terpenes and flavonoids, which give marijuana its strong aroma and earthy flavor.

“Broad spectrum” CBD typically contains at least three other cannabinoids, as well as some terpenes and flavonoids – but still no THC. “Full spectrum” CBD, also called “whole flower” CBD, is similar to broad spectrum but can contain up to 0.3% THC.

In states where recreational marijuana is legal, the list of cannabis-derived products greatly expands to include CBD with much higher THC content than 0.3%.

There is no standardized dosage of CBD. Some retailers may have enough knowledge to make a recommendation for first-timers. There are also online resources – like this dosage calculator: https://dailycbd.com/en/cbd-dosage/

Consumers concerned about content and the accuracy of CBD products, which are not regulated by the Food and Drug Administration, can look for certification from independent lab testing or by scanning a QR code on product packaging.

Note that CBD oil is different from hemp oil – which comes from pressing cannabis seeds, and may not contain CBD – and hempseed oil, which is a source of essential fatty acids and contains no CBD. It’s a nutritional supplement, more like fish oil than CBD oil.

Legal Status

Another big difference among hemp, marijuana and CBD is how the law treats them.

Though 15 states have now legalized recreational marijuana, it remains illegal federally in the United States. Technically, those in possession of marijuana in a legal weed state can still be punished under federal law, and traveling across state borders with cannabis is prohibited.

Hemp, on the other hand, was made legal to grow and sell in the United States in the 2018 Farm Bill.

One would assume, then, that hemp-derived CBD should be federally legal in every state because the THC levels don’t surpass 0.3%. But CBD occupies a legal gray area. Several states, such as Nebraska and Idaho, still essentially regulate CBD oil as a Schedule 1 substance akin to marijuana.

Our recent study found that Americans perceive hemp and CBD to be more like over-the-counter medication and THC to be more like a prescription drug. Still, the average person in the U.S. does not view hemp, CBD, THC or even marijuana in the same light as illicit substances like meth and cocaine – even though both are classified by the DEA as having a lower potential for abuse than marijuana.

The current federal prohibition of marijuana, in other words, does not align with the public’s view – though state-based legalization shows that society is moving on without the blessing of politicians on Capitol Hill. U.S. recreational marijuana retail sales may reach US$ 8.7 billion in 2021, up from US$ 6.7 billion in 2016.

As interest in other cannabinoids, like cannabigerol, or CBG – which some are touting as the new CBD – continues to grow, so too grows the need for further medical research into cannabis.

Brandon McFadden is an assistant professor of Applied Economics and Statistics at University of Delaware

Trey Malone is an assistant professor and extension economist at Michigan State University

This article was originally published in The Conversation. Read the original article here: https://theconversation.com/cbd-marijuana-and-hemp-what-is-the-difference-among-these-cannabis-products-and-which-are-legal-154256

"Some states like New Zealand along with a number of biotech companies now want to sneak language into the text that would actually allow for a ‘case by case’ assessment of such technologies to open the door to field testing, while they officially claim to uphold the moratorium", said Greenpeace International’s Benedikt Haerlin from the Convention.

"This technology threatens biodiversity, farmers rights and the environment – what is needed is a ban on these technologies and not an erosion of the moratorium under the pretext of scientific impact and risk assessment," said Haerlin.

Terminators, or GURTS (Genetic Use Restriction Technologies), are a class of genetic engineering technologies which allow companies to introduce seeds whose sterile offspring cannot reproduce, preventing farmers from re-planting seeds from their own fields.

The seeds could also be used to introduce specific traits which would only be triggered off by the application of proprietary chemicals provided exclusively by the same companies.

Terminator technologies would allow companies to prevent the public from accessing the results of future breeding, which is the present rationale of plant breeders’ rights and even patents. The moratorium adopted by the Convention on Biodiversity in 2000, discussed the need for more information on the socio-economic, cultural and environmental impacts of these technologies.

"Nothing in the past six years has changed the status quo. Rather, all the additional information we now have on the impact of these technologies confirms that sterility is not a viable means to protect agricultural biodiversity, that it poses a potential threat to food security and that it would have severe impacts on the livelihoods of farmers around the world," concluded Haerlin.

Greenpeace – www.greenpeace.org

Brazil’s Bovespa Index dropped 137.69 points, or 0.39%. Mexico’s benchmark Bolsa Index rose 262.05 points, or 1.40%, while Argentina’s Merval Index added 4.83 points, 0.30%.

Brazilian stocks dipped, as investors took some profits following last week’s impressive gains on expectations for solid economic growth, tame inflation and further declines in interest rates in 2006.

Shares were also pressured by investor caution ahead of key economic data due out later this week, including industrial output tomorrow and inflation figures on Thursday.

The data may help to shape the outcome of the Brazilian central bank’s next monetary policy meeting on January 18. The bank is currently expected to cut interest rates by at least 50 basis points at that meeting.

In corporate news, Petrobras said it achieved record refinery output in 2005 for a second-straight year. Last year, the company processed an average 1.758 million barrels of oil per day, up from a daily average of 1.728 million barrels in 2004.

Steel maker CSN was in focus after a major investment bank upgraded the stock to "buy" from "neutral," citing stronger fundamentals in the domestic steel industry and improved output in the company’s iron ore mining operations.

Meanwhile, budget airline Gol was downgraded by an investment bank to "peer perform" from "outperform" in a valuation call.

Grocer CBD said its board unanimously approved the appointment of former Banco do Brasil president Cássio Casseb as the company’s new president.

Elsewhere, Mexican shares surged, extending last week’s strong gains on optimism about the local economy and hopes the U.S. Federal Reserve will soon end its interest-rate hiking cycle.

On the corporate front, airport operator Asur said that passenger traffic in December dropped 28.4% from a year earlier, as several of its airports continued to feel the impact of Hurricane Wilma, which hit the Caribbean coast in October.

Cement giant Cemex was downgraded by an investment bank to "peer perform" from "outperform." The bank said positive news is likely already priced into the company’s shares, which are up sharply from last year.

Meanwhile, another investment bank reinstated coverage of tortilla and flour maker Gruma with a "buy" rating, saying the company’s market segment has more room to grow.

In other developments, the Mexican stock exchange said airline holding company Cintra SA, airport operator Grupo Aeroportuario del Sureste SA, steel firm Industrias CH SA, homebuilder Sare Holding SA and building company Carso Infraestructura y Construccion will join the benchmark IPC index in February.

The reconfiguration will leave out of the IPC index entertainment firm Corporacion Interamericana de Entretenimiento, bottler Grupo Continental, conglomerates Desc SA and Grupo Imsa SA, and cement maker Grupo Cementos de Chihuahua SA.

Argentine issues edged higher, adding to last week’s gains. Trading volume was light, amid a dearth of market news, as the Southern Hemisphere summer holiday season gets underway.

Banco Macro Bansud was in focus after the company filed a registration statement Friday with the U.S. Securities and Exchange Commission to list American Depositary Receipts. The move was part of a plan announced in late August to list 75 million new Class B shares on overseas and local markets.

Thomson Financial – www.thomsonfinancial.com

Brazil’s benchmark Bovespa Index fell 436.20 points, or 1.30%, while Mexico’s benchmark Bolsa Index tumbled 131.56 points, or 0.73%. Argentina’s Merval Index rallied 29.42 points, or 1.93%.

Brazilian stocks gave in to profit-taking, after the benchmark Ibovespa stock index tallied record highs on both Tuesday and Wednesday. In economic headlines, the Brazilian Central Bank’s monetary policy committee, or Copom, cut the reference lending rate for a fourth consecutive month.

The reference Selic rate was reduced to an annual 18% from 18.50%, with no bias for rates going forward. The move was widely expected from economists.

Brazil’s state-run oil firm Petrobras announced that its November oil output rose 0.6% to 1.734 million barrels a day from 1.723 million b/d in October. The most recent results came despite a temporary halt in production in the Amazon and while an offshore well was re-established.

Meanwhile, supermarket chain CBD said that its nominal same-store sales rose 1.4% in November, compared to the same month a year ago, aided by sales on non-food products. Still, same-store sales, when adjusted for inflation, tumbled 4.5% in November from a year ago.

Mining firm CVRD announced that it will hold a 9% stake in the Ceará Steel joint venture project in Northeast Brazil. The project is a joint venture between South Korea’s Dongkuk Steel and Italy’s Danieli & C. Officine Meccaniche. CVRD declined on the day.

Airline Varig filed a petition today to quickly end the bankruptcy proceedings it started in July, which was subsequently denied by a local civil court. The firm has until January 8 to present a restructuring plan, under the terms set by the bankruptcy court.

Mexican shares also moved lower, following three straight sessions of record gains. Investors also monitored a batch of U.S. economic reports, including a plunge in November consumer prices, which marked the largest drop in 56 years. Industrial production and capacity use also advanced ahead of expectations last month.

A major investment bank raised Grupo Televisa’s rating to "overweight" from "equal weight" and initiated a 2006 year-end price target of US$ 92. The broker also maintained an "underweight" rating on fixed line Telmex with a price target of US$ 19.

Argentine issues rallied late in the day on speculation about the country’s debt repayment to the International Monetary Fund. After the market closed, news agencies reported that Argentine President Nestor Kirchner said the country will make a US$ 9.8 billion payment by the end of the year, instead of gradually over the next four years, which is estimated to save Argentina about US$ 1 billion in interest.

On the economic front, the national statistics agency, or INDEC, said that the gross domestic product rose 2.3% in the third quarter from the second quarter, and jumped 9.2% on the year, above expectations.

Aluminum producer Aluar is reducing prices on aluminum for packaging of basic consumer products by 15%. The move is in line with the government’s policy to lower inflation by signing sector-by-sector accords.

Thomson Financial Corporate Group – www.thomsonfinancial.com

Brazil’s Bovespa Index surged 604.88 points, or 1.98%. Mexico’s benchmark Bolsa Index rose 144.71 points, or 0.89%, while Argentina’s Merval Index added 16.26 points, or 1.03%.

Brazilian stocks firmed, as investors continued to react positively to testimony from Finance Minister Antonio Palocci yesterday.

In his address, the Minister allayed fears that he would soon resign, amid criticism over his policies and allegations of bribery. Separately, a drop in oil prices and strength on Wall Street also helped.

In economic news, retail sales edged up 0.1% in September, versus August, while climbing 5.62% from a year ago. Economists had predicted a 0.2% decline from August.

On the corporate front, oil firm Petrobras noted that its oil output fell to 1.723 million barrels a day in October from 1.733 million the prior month.

Separately, the firm reported that a project to develop gas reserves off the coast of São Paulo state will cost about US$ 1.9 billion. Petrobras is still negotiating with Spanish-Argentine Repsol over how to develop the project.

Turning to industrials, aircraft maker Embraer forecast strong demand for its recently launched Phenom light and very light jets.

Separately, low-cost airline Gol is ironing out the last details on a joint venture with Mexico’s Inversiones y Tecnicas Aeroportuarias to launch a low-cost airline in Mexico in the second quarter of next year.

Meanwhile, supermarket chain CBD reported that its October same-store sales edged lower by 0.1% from a year ago due to lower consumer confidence and deflationary trends in some product categories.

In research, a major investment bank started Energias do Brasil at "overweight" and CPFL Energia at "neutral."

Elsewhere, Mexican shares recorded strong gains as well, as investors continued to cheer in-line third-quarter GDP figures released late yesterday. An influential investment bank lifted its GDP projections, explaining that, "the manufacturing outlook for the fourth quarter has brightened, backed by recent signs of strengthening in U.S. manufacturing."

Speaking of U.S. manufacturing, U.S. industrial output gained 0.9% in October, after falling 1.5% the prior month, roughly in line with estimates. Capacity use increased to 79.5% from a revised 78.9%.

However, the Philly Fed index fell to 11.5 in November from 17.3 in October, below targets for a reading of 17.0. Also, housing starts declined by 5.6% in October, versus the anticipated drop of 2.8%. In other U.S. reports, weekly initial jobless claims fell by 25,000, compared with expectations for a decline of 2,000.

In domestic news, oil company Pemex reported that its output declined to 3.22 million barrels a day in October from 3.45 million a year prior.

In research, a key investment bank backed its "buy" rating on Walmex, seeing benefits from "greater emphasis on smaller and rural markets."

Meanwhile, Argentine issues firmed, in line with regional counterparts. A rally in domestic bonds provided support on the equity side of the equation. Further, investors were reportedly enthusiastic over the launch of a new instrument called Macc, which bundles together the largest Merval stocks like an exchange-traded fund.

Of note, in economic reports, industrial output jumped 9.5% in October from 8.6% the prior month, well past forecasts of 8.0%. Separately, national statistics agency INDEC upwardly revised its monthly GDP estimates, seeing a 9.0% increase in September on the year and a 1.1% improvement from August. August’s results were also revised higher.

Thomson Financial Corporate Group – www.thomsonfinancial.com

Latin American markets advanced across the board, alongside U.S. market strength. Helping to bolster both the domestic and U.S. markets were comments from the U.S. Federal Open Market Committee relating to “contained” U.S. inflation, which could lead to a slowdown in future interest rate hikes.

Brazil witnessed the most notable gains amid some upbeat corporate reports. Mexico and Argentina also posted healthy gains.

Brazil’s benchmark Bovespa Index surged 580.25 points, or 2.17%, while Mexico’s benchmark Bolsa Index advanced 76.57 points, or 0.52%. Argentina’s Merval Index rose 10.04 points, or 0.67%.

In major U.S. economic reports, as expected, the FOMC raised interest rates for the 10th consecutive time by a quarter point to 3.50%. Separately, non-farm business productivity grew a stronger-than-expected 2.2% in the second quarter, down from a revised 3.2% rate in the first quarter.

Brazilian issues led the broader market advance. The country’s second-quarter earnings season is well underway, with some market heavyweights, including CVRD and CSN, releasing results tonight and tomorrow. Also, Brazil, a net importer of crude oil, benefited from receding oil prices, which finished at the low end of US$ 63 a barrel.

Turning to economic reports, the IPCA Broad Consumer Inflation Index advanced 0.25% in July, compared to a 0.02% fall in June. Higher fuel prices and telephone fees were cited for the latest uptick in consumer prices.

In major corporate earnings reports, CBD said that its second-quarter net profit rose more than 10% to 64.2 million reais from 58.2 million reais a year ago, partly due to cost-cutting measures. Brazil’s largest supermarket owner said that EBITDA rose to 291.5 million reais from 255.0 million a year ago, while net revenues advanced to 3.16 billion reais from 3.06 billion reais.

Meanwhile, mobile phone firm Telemig announced a 5% advance in its second-quarter net profit to 41.77 million reais from 39.71 million reais last year, while net revenue declined to 288.3 million reais from 304.8 million reais. EBITDA also fell to 108.1 million reais from 124.9 million reais. Telemig said that its average revenue per user fell to 26.9 reais per month during the second quarter from 35.8 reais a year earlier.

In other corporate reports, state-run oil firm Petrobras will raise its international oil and gas output to 350,000 barrels of oil equivalent a day by 2009 from a current rate of 260,000 BOE, according to the Agência Estado newswire. Petrobras will achieve this rate through boosting its activities and investments in Nigeria.

Mexican issues also witnessed another positive session, bolstered by strength in U.S. markets. Still, inflation concerns curtailed some of the country’s initial gains. The Bank of Mexico reported that the Consumer Price Index jumped 0.39% in July after falling 0.10% in June and rising 0.26% in the year-earlier period. Annual inflation now stands at 4.47% from 4.33% at the end of June. Rising fruit and vegetable prices played a part in last month’s rise in consumer prices.

Also, a positive brokerage note on a major wireless phone company boosted the key IPC index. America Movil’s price target for its American Depositary Receipts was raised to US$ 28 by mid-2006 from US$ 22.50 at the end of 2005 due to stronger-than-expected second-quarter results. The broker also said America Movil gained market share due to strong subscriber growth.

Argentina turned positive, following two straight session declines. Still, trading volume took a steep fall. In earnings news, packaged food producer Molinos swung to a first-half net profit of 35 million pesos, reversing a year-earlier net loss of 11.7 million pesos. Revenue totaled 1.23 billion pesos, while operating profit advanced to 30.3 million pesos in the first half from 7.6 million pesos.

Thomson Financial Corporate Group – www.thomsonfinancial.com

Latin American stocks turned lower across the board in a broad-based bout of profit-taking. Brazil led the declines, as the country’s ongoing political scandal resurfaced on investors’ radar.

Meanwhile, Mexican issues receded following three-straight record-breaking sessions. Argentina posted modest declines.

Brazil’s benchmark Bovespa Index plunged 698.42 points, or 2.69%, while Mexico’s benchmark Bolsa Index tumbled 132.46 points, or 0.94%. Argentina’s Merval Index slipped 3.63 points, or 0.25%.

Brazilian shares finally gave into profit-taking, after posting solid gains for four-straight sessions partly due to expectations the central bank may soon cut interest rates.

Also weighing on the market was the latest development in the ongoing alleged bribery scandal related to the governing Workers’ Party.

News that Marcos Valério is attempting to cut a deal by providing evidence to prosecutors in exchange for a lighter sentence concerned investors. Valério allegedly helped funnel money into a PT bribery scheme that encompassed exchanging money for votes in Congress.

Meanwhile, the governing Workers’ Party halted its bill payments until July 19th “when the National Committee will discover the party’s real financial situation.”

The move comes amid allegations that party officials were using money from state-owned firms in exchange for legislative votes.

On the corporate front, aircraft maker Embraer announced last night that it delivered 30 jets during the second quarter, bringing the total delivered so far this year to 60.

Elsewhere, grocer CBD said that its same-store sales rose 1.0% in June from a year ago. Same-store sales, after being adjusted for inflation, declined 5.8% on the year. Brazil’s largest grocer said that ongoing weakness in food sales is to blame for the lackluster results.

Like Brazil, Mexican issues also fell on profit-taking, following three-consecutive record-high closes. Investors’ views are generally positive regarding Mexico’s upcoming second-quarter earnings season.

In corporate headlines, Grupo Televisa said that higher pay television and broadcasting revenues led the media conglomerate to post strong second-quarter results.

The firm’s quarterly sales jumped 6.5% to 7.86 billion pesos from the corresponding period a year ago, while its operating profit surged 16.4% to 2.7 billion pesos. Televisa’s net profit grew to 1.28 billion pesos from 481.6 million pesos a year ago.

Meanwhile, engineering and construction firm ICA announced that its shareholders approved a capital increase of US$ 230 million through the issuance of 1.14 billion new shares. ICA shares fell on the day.

Argentine issues edged lower, a day after investors cheered indications the International Monetary Fund was ready to discuss a new loan accord with the country.

In economic headlines, Torcuato Di Tella University reported that consumer confidence eased 0.2% in July from last month, while confidence was 2.9% higher from a year ago.

Thomson Financial Corporate Group – www.thomsonfinancial.com

Latin American stocks returned to positive territory. Brazil recovered from yesterday’s decline, in what has so far been a roller coaster week for the key Bovespa Index.

As widely expected, the Brazilian central bank held interest rates steady at 19.75% a year. Mexican and Argentina tallied more modest gains.

Brazil’s benchmark Bovespa Index surged 269.15 points, or 1.06%, while Mexico’s benchmark Bolsa Index jumped 35.77 points, or 0.26%. Argentina’s Merval Index rose 5.04 points, or 0.35%.

Brazilian issues bounced back today, after the central bank left its base Selic interest rate unchanged at 19.75%, ending nine consecutive months of rate hikes.

Among some of the factors that likely led to the rate freeze was the recent IPCA Broad Consumer Price Index reading for May, which came in below market expectations.

Turning to corporate reports, CBD (Companhia Brasileira de Distribuição – Brazilian Company of Distribution) announced last night that its nominal same-store sales rose only 2.5% in May year-over-year.

Brazil’s largest grocer cited a slowdown in the economy and one less Saturday last month, compared with May 2004, for the meager growth figure. Total gross sales for May rose 3% to 1.291 billion reais, while net sales gained 4.4% to 1.073 billion reais, compared to a year earlier.

On the political front, according to the Agência Estado news agency, Brazil’s Education Minister Tarso Genro said that President Luiz Inácio Lula da Silva is planning to announce an overhaul of his cabinet within the next several days.

Mexican shares built on yesterday’s rally, in which the key IPC index reached its highest level in approximately three months.

In corporate news, America Movil unit Sercotel said that it plans to launch its mobile phone service in Peru by the end of this year.

The firm won a 20-year license for a mobile telephone band from ProInversion, a government privatization agency, this past March.

Argentine receipts posted modest gains. Traders were focusing on the expiration of options contracts, which are expected to continue into early next week.

Topping economic headlines, Indec, the national statistics agency, said that preliminary gross domestic product data for the first quarter showed growth of 8.0%, compared to the year-earlier period.

The reading was slightly below market expectations and showed a slowdown from the fourth-quarter’s 9.3% expansion on a year-over-year basis. The fourth-quarter results were upwardly revised from a prior 9.1% reading.

Indec also reported that industrial output rose 8.5% in May from the year- earlier period, well above analyst expectations. Industrial production rose 1.2% in May from April.

Meanwhile, the president of the Buenos Aires Stock Exchange, Adelmo Gabbi, said that he is “optimistic” that President Nestor Kirchner will do something to mitigate the negative effect on domestic stocks created by the recent one- year freeze on 30% of incoming foreign capital.

In corporate reports, Argentina’s auto mechanics union reached a wage agreement with the local division of Volkswagen last night. Earlier yesterday, the union reached agreements with Ford and DaimlerChrysler.

Thomson Financial Corporate Group – www.thomsonfinancial.com

Brazilian and Latin American shares returned a small portion of the impressive gains logged yesterday, as U.S. markets receded. Sentiment in the region was initially positive, but markets turned sour after debt downgrades for General Motors and Ford Motor in the U.S.

Brazilian, Mexican and Argentinean shares all edged lower. Traders are also awaiting April’s U.S. employment report, set for release tomorrow, which should provide further insight into the state of the U.S. economy.

Brazil’s benchmark Bovespa Index slipped 38.65 points, or 0.15%, while Mexico’s benchmark Bolsa Index receded 23.13 points, or 0.18%. Argentina’s Merval Index fell 4.04 points, or 0.28%.

Brazilian issues slipped lower on the session amid profit taking, after the key Bovespa Index surged more than 3% yesterday. On the corporate front, investors continued to cheer a major investment in CBD by French retailer Casino Guichard Perrachon & Cie, announced yesterday.

On the earnings front, Ambev posted a steep decline in its first-quarter net profits to 144.2 million reais from 305 million reais in the corresponding period a year ago.

Profits were hit by costs stemming from the incorporation of the Labatt Brewing Co. Ltd. of Canada. Still, EBITDA jumped to 1.45 billion reais from 893.6 million reais a year ago on an increase in revenue to 3.70 billion reais.

Meanwhile, the Brazilian Development Bank said that it will loan Petrobras US$ 642 million for the construction of two oil platforms, P-51 and P-54. The state-run oil firm also announced that average domestic oil output rose to 1.704 million barrels a day in April from 1.571 million b/d in March due to a rise in production at new offshore oil platforms.

In further news from that firm, the Federation of Petroleum Workers, which represents about 40,000 Petrobras employees, rejected a profit-sharing proposal offered by the firm and indicated that they may strike.

Within the telecom group, Brasil Telecom was active on word Citigroup obtained an injunction from a New York court to block an agreement between Opportunity and Telecom Italia regarding their interests in Brasil Telecom.

Citigroup also holds interests in the phone company. Separately, a group of Brazilian pension funds filed suits to halt the reorganization of Brasil Telecom.

Turning to economic reports, the National Confederation of Industries announced that capacity use edged up to 82.6% in March from 82.0% a year ago.

Separately, the National Motor Vehicle Manufacturers Association said that motor vehicle output declined 6.9% in April from March, but was up 19.7% from the corresponding period a year ago.

Mexican receipts also turned lower on the day, taking their cue from a drop in U.S. shares. Also, news was light on the session, as Mexico’s first-quarter earnings season is mostly over.

Meanwhile, Alsea SA said that it bought franchisee Alipronto and its four Burger King outlets, making the firm the largest Burger King franchisee in the country. Financial terms of the deal were not disclosed.

Asur announced that total passenger traffic for April rose 4.3%, compared to the corresponding period a year earlier.

Argentina followed the broader move lower. A major investment bank upgraded steel pipe products maker Tenaris SA to “buy” from “neutral” and lifted its price target to US$ 85 from US$ 58.

The broker said that it was “positively surprised” by the firm’s pricing power in the first quarter and expects sustained profitability from Tenaris.

Elsewhere, high-voltage electricity transporter Transener reported stronger first-quarter profit results, boosted by higher net sales revenue from non-regulated operations.

Thomson Financial Corporate Group
www.thomsonfinancial.com

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