iShares Latin America 40
Latest iShares Latin America 40 News and Updates
Will Banco de Mexico Follow the Fed in Raising Rates in 2016?
Since the rate hike by the Fed in December 2015, Banco de Mexico has raised rates three times totaling 125 basis points.
Southern Copper’s Financial Performance: Key Investor Takeaways
Southern Copper’s financial performance has weakened over the last couple of years. Its falling revenues are largely attributable to copper price volatility.
World Refined Copper Production Rose 5% in 1Q15
Refined copper production in China rose 9% YoY until March. China was the biggest contributor to the surge in refined copper production.
Why Copper Bears Shouldn’t Lose Heart
While copper bears have been overshadowed by the bulls this month, they might like their chances in 4Q17.
Unemployment in Mexico holds steady, finally some good news
May unemployment figures were marginally stable compared to April Unemployment is a key indicator of economic health. It’s a lagging indicator, and that means it’s better at confirming trends, especially downward trends, since unemployment rises faster than it falls. Unemployment holds steady, in line with PMI employment indicator The June PMI showed a continued slowdown […]
The Argentine Peso Tanks as Government Fulfils the Promise of Freefloat
The US dollar and Argentinian peso currency pair, which is inversely related to the Argentinian peso, rose by 35.6% on December 17, 2015.
Why Brazilian consumers are becoming pessimistic
Consumer expectations surveys are helpful for analysts Consumer expectations drive the trade-off consumers make between spending and saving. Both saving and spending are important for economic growth. More spending means there’s more demand for products, so businesses increase revenues and profits. More saving, though, means banks have more capital to lend out to businesses to […]
What Chile’s Mining Strike Means for a Highly Privatized Economy
Chile had been known as the best-managed economy in Latin America—until recently.
Why IMF Slashed Brazil’s Economic Growth Outlook in 2017
Economic activity in Brazil (EWZ) has been slow as it tries to emerge from its deep recession in 2016. But consumer and business confidence is improving.
Mexican manufacturing employment up, but wages suffer from inflation
The employment figures for March’s manufacturing indicators showed increases in employment, but real wages dropped significantly. The manufacturing sector in Mexico plays an important role in the economy, and while it accounts for approximately a fifth of GDP, its sensitivity to consumer demand makes it a good gauge of the overall health of the country. […]
Will Trade Deal with Mercosur Bloc Boost Colombia’s Auto Sector?
Colombia (GXG) signed a deal with the Mercosur trade bloc on July 21, 2017, to allow the import of limited quantities of certain products without a tariff in the Colombian market.
Is Economic Activity in Mexico Steady despite Trade Fears?
The Mexican economy expanded 0.6% in 1Q17, beating market expectations. Exports and private spending have continued to support growth in Mexico this year.
Investor Sentiment Favors Peru, Chile, and Brazil
Investor sentiment with respect to Latin American economies has definitely been changing since the beginning of the year.
Do Lower Chinese Copper Imports Concern Freeport?
In October, China imported 290,000 metric tons of unwrought copper and copper products—a yearly fall of more than 31%. Imports have fallen for seven months.
China’s June Copper Imports: Are Slowdown Talks a Sham?
China isn’t self-sufficient when it comes to raw materials. When it comes to copper imports, it’s the largest importer of copper ores, anodes, and refined copper.
Sluggish Chinese Copper Imports Spell Trouble for Freeport
China isn’t self-sufficient when it comes to its copper needs. While copper mining is concentrated in Latin America, more than half of the world’s copper is consumed in Asia.
HSBC Might Cut Jobs after CEO’s Exit
After CEO John Flint’s exit, HSBC might cut thousands of jobs—mainly seniors executives. Noel Quinn will serve as an interim CEO.
Why Brazil’s equity market keeps dropping (Part 1)
Several negative factors have come combined to cause a steep drop in the equities market Over the past month, the main Brazilian ETF, EWZ, has dropped 20% in value. Below is a recap of the negative chain of events that led to this fall and how likely the market will recover. Social unrest: Why Brazil’s equity market […]
Analyzing Duke Energy’s Expected 3Q16 Earnings and Its Drivers
Duke Energy (DUK) is the second-largest utility by market capitalization. It will report its 3Q16 financial results on November 4, 2016.
Outlook Projections: IMF Cuts Global Growth Forecasts
The IMF cut its global economic growth forecasts, according to the latest IMF World Economic Output Update dated July 19. The cut in forecasts was expected.
Surge in Imports Increases Argentina’s Trade Deficit in May 2017
Argentina (ARGT) posted a higher trade deficit for May 2017 at $642 million, mainly due to increasing imports as compared to its exports.
Why Colombian Stocks Are Surging in 2017
As the third-largest economy in Latin America, Colombia is expected to recover from its subdued growth of ~2% in 2016—its lowest figure since 2009.
Chinese Copper Imports: Can Freeport’s Good Run Continue?
Previously in this series, we’ve looked at China’s July steel and aluminum exports. In this final part of the series, we’ll look at Chinese copper imports.
Brazil unemployment steadily decreasing
Unemployment may be a lagging indicator, but Brazil’s steady unemployment downtrend is greatly reassuring that the economy has a solid base. Unemployment is a basic indicator of the economic performance of an economy. A low is a basic requirement for a country to achieve its economic growth potential. In the case of Brazil, unemployment has […]
Analyzing China’s January Copper Imports
Last month, China imported 443,000 metric tons of unwrought copper and copper product. China imported 450,000 metric tons in December 2017.
An Introduction to Brazil’s Largest Banks, Latin America’s Biggest
Since the ’80s and ’90s, Latin American banks have stabilized. Today, the largest banks in Latin America are concentrated in two countries: Brazil and Mexico.
Chinese Refined Copper Imports Are Flat in August
In the first eight months of 2015, China’s refined copper imports are down 6.7% compared to the corresponding period last year.
How Were China’s Copper Imports in January?
Looking at copper import data, Chinese copper demand is not as weak as many are expecting.
Latin America Is at a Crossroads
Latin America is at a crossroads. While some economies are faring reasonably well, others are struggling to recover from slower growth since 2013.
China’s Copper Imports Dip in May Month-over-Month
China is the largest importer of copper ore, anodes, and refined copper. Chile, on the other hand, is the biggest exporter of these products.
Mexico’s unemployment is not showing signs of recovery
While it may not come as a surprise, the worsening unemployment means the economy is not improving Unemployment is a key indicator of economic health. It is a lagging indicator, and that means it is better at confirming trends, especially downward trends, since unemployment rises faster than it falls. After the tease drop in February, […]
Trump’s Win Sends the Mexican Peso Reeling
Donald Trump’s win in the 2016 US presidential election wasn’t good news for Mexico (EWW). The Mexican peso fell more than 10% on November 9, 2016.
Analysts Weigh in on Antofagasta amid Lower Copper Prices
Antofagasta (ANTO) has received “strong buy” ratings from seven analysts, while five have given it “buy” ratings or some equivalent.
Insights into Brazil’s Manufacturing PMI in September 2017
The final Markit Brazil Manufacturing PMI (Purchasing Managers’ Index) stood at 50.9 in September 2017. It remained unchanged compared to August 2017.
Did Brazil’s Manufacturing Activity Improve in August?
According to a report by Markit Economics, the final Brazil manufacturing PMI (purchasing managers’ index) rose to 50.9 in August 2017 as compared to 50 in July.
China’s Copper Imports: Did Data Spoil Freeport’s Party?
China imported 390,000 metric tons of unwrought copper and copper products in August 2017—compared to 350,000 metric tons in August 2016.
Inflation in Colombia Continues to Fall in July 2017
Consumer prices in Colombia (GXG) rose 3.4% on a year-over-year basis in July 2017, lower than the 4.0% rise in June 2017.
Analyzing Copper Miners’ 2017 Production Plans
During its 2Q17 earnings call, Freeport-McMoRan (FCX) lowered its 2017 copper production guidance to 3.7 billion pounds.
What Drove the Rise in Mexico’s Manufacturing Activity in June?
Mexico’s manufacturing activity posted a strong performance after its output, new orders, and employment picked up the pace in June 2017.
Did Inflation Pose a Huge Concern for Mexico in June 2017?
Consumer prices in Mexico (EEM) surged 6.31% year-over-year (or YoY) in June 2017, compared to their 6.16% rise YoY in May.
Mexican Unemployment Edged Up in June—Is the Rise Temporary?
Global (ACWI) recovery in 2017 has helped labor market conditions to improve across OECD (Organisation for Economic Co-operation and Development) nations.
Mexico’s Economic Activity Rebounded in May 2017
Economic activity in Mexico rose 3.1% year-over-year (or YoY) in May 2017, a rebound from its YoY fall of 0.57% in April 2017.
Is Brazil’s Business Confidence on a Declining Trend in 2017?
Political chaos has affected confidence levels in Brazil, which saw its business confidence reach its lowest level in 2017 in June.
Brazil’s Inflation in June: A Story of Decline
Consumer prices in Brazil (BRZU) grew by 3% YoY in June 2017, compared with 3.6% in May 2017.
Why Argentina’s Consumer Confidence Fell in June 2017
President Mauricio Macri’s austerity measures seem to be impacting Argentina’s consumer confidence, as it saw another fall in June 2017.
Sluggish Mining Sector and Chile’s Trade Surplus in June
Chile’s economy is highly dependent on copper mining activities. The recent long strike at BHP Billiton’s Escondida copper mine continues to impact Chile.
Peru’s Inflation in 2017 and Slower Economic Activity
Peru’s economy continues to suffer in 2017 from the damage caused by floods in March 2017 due to the ENSO (El Niño Southern Oscillation).
Performance of Latin American Equities Steady in June 2017
Latin American (ILF) equities in June 2017 remained steady amid the political turmoil among its member nations.
Political Tensions in Brazil: Former President Lula’s Conviction
On July 13, 2017, Brazil’s former President Luiz Inácio Lula da Silva was sentenced to ten years in prison for graft.
Will Monetary Easing Support Colombia’s Economic Growth in 2017?
Colombia, an important Latin American (ILF) economy, is currently facing sluggish growth due to a decline in commodity prices (DBC) and political instability.
Will Colombia’s Economic Growth Pick Up in 2Q17?
1Q17 economic growth in Colombia (ICOL) remained below market expectations.
How Colombia’s Inflation Is Trending
Annual consumer inflation in Colombia (GXG) has dropped for 12 consecutive months as of June 2017.
Why Brazil’s Manufacturing Activity Lost Momentum in June 2017
Brazilian (ILF) manufacturers remain firmly optimistic about the country’s output growth in the next 12 months.
Why Barclays Thinks UAL Earnings Could Improve
UAL is currently trading at $76. Its 52-week high is $83.04, and its 52-week low is $37.64.
Why Consumer Confidence in Argentina Is Falling in 2017
Argentina’s (FM) consumer confidence saw a huge drop in June 2017, as Argentinians are highly unsatisfied with the austerity measures President Macri’s government has adopted.
Slumping Commodity Prices Pressure the Brazilian Real in 2Q17
The Brazilian real dropped ~2% in May 2017 amid the country’s ongoing political instability.
Is Argentina on the Path to Recovery in 2017?
The leading economic index in Argentina rose 3.0% in May 2017 compared to 0.70% in April 2017.
Why Global Mining Leader Peru Is Seeing Slower Growth in 2017
According to Peru’s Ministry of Economy and Finance, the El Niño–related infrastructure damages were close to $4 billion.
Did Chile’s Copper Mine Strike Impact Its Economic Growth in 1Q17?
Chile’s economy grew 0.1% on a year-over-year basis in 1Q17, lower than the 0.5% expansion in 1Q16.
Why Colombia’s Economic Growth Slowed in 1Q17
Colombia’s (ICOL) GDP grew 1.1% year-over-year in 1Q17, lower than its 1.6% expansion in 1Q16.
Will Mexico Look Past the US to Improve Economic Activity in 2017?
Trump’s anti-trade rhetoric has caused Mexican officials to consider working toward reducing the country’s reliance on the US.
Peru’s Flood and the IMF
Peru is one of the fastest-growing economies among emerging markets.
Will Rising Commodity Prices Help Brazil Recover?
Brazil (EWZ) is expected to see a reversal of the downward trend in its economic growth in 2017, mostly with the help of rising commodity prices and improvements in exports.
This Is How the Trump Victory Could Affect Brazil and Mexico
After the election of Donald Trump, the iShares MSCI Brazil Capped ETF (EWZ) slipped.
Why the IMF Expects Brazil and Russia to Remain in Recession
The IMF expects the economy of Brazil to fall 3.3% in 2016, following its 3.8% decline in 2015.
Is It Raining Gold for Brazil?
Brazil’s performance in the 2016 Rio Olympics and worldwide speculation about a Fed rate hike might have a role to play in the country’s stock market performance in fiscal 2016.
Why Investors Are Upbeat about Emerging Markets
The sharp rise in global liquidity conditions has been channeled mainly into emerging market (EEM) economies.
Latin American Markets Rise, Chile Records Slower Inflation
Latin American markets were trading higher on August 8—taking cues from a rise in commodity and crude prices globally.
Colombia Hikes Rates, Chile’s Industrial Production Contracts
Colombia’s central bank increased the benchmark interest rates for the 11th consecutive meeting by 25 basis points to bring the rate to 7.8%.
How Much of a Driver Is Agriculture for Brazil’s Economy?
As Latin America’s largest country in terms of population and land size, Brazil (EWZ) is becoming a key player among the emerging economies,
Analyzing Scenarios in the IMF’s Report: What to Expect
The IMF looks at two risk scenarios for estimating the growth forecasts in case of increased risks. The two new scenarios are “downside” and “severe.”
Why Does Latin America Need to Improve Competitiveness?
In many Latin American (ILF) (ECH) countries, higher growth and development have been accompanied by loss of competitiveness and a decline in productivity.
How Can Latin America Keep Up Inclusive Growth?
The Latin American (ILF) (EWW) economy contracted in the second half of 2015. The fourth quarter registered the biggest fall in six years.
How Mobile Banking Boosts Financial Inclusion in Latin America
World Bank data reveal that since 2011, more than 60 million people in Latin America have opened bank and mobile money accounts.
How Is Technology Connecting Lives in Latin America?
Statista data show that the mobile penetration rate in Latin America reached a new high of about 126% in 2015.
How Disruptive Innovation Is Changing Latin America
Changing demographics in Latin America are driving innovations. Young people, which account for 25% of the total population, are more likely to accept innovation.
Colombia Central Bank Hikes Rates by 25 Basis Points on June 22
The central bank of Colombia increased interest rates on June 22, 2016, by 25 basis points to 7.5%, which was in line with expectations. This was its tenth consecutive hike in benchmark rates.
Central Bank of Chile Keeps Rates Constant, Monitors Inflation Levels
The banking sector in Chile got a boost as Banco Santander Chile (BSAC) and Banco De Chile (BCH) rose by more than 1% on June 17.
What’s Driving China’s Copper Imports in 2016?
In May, China imported 430,000 metric tons of unwrought copper and copper products. Although imports fell 4.4%, they have risen more than 18% YoY.
Brazilian Equities: Could Bad News Be Good News?
Political upheaval is hardly anything to cheer about in theory, but it can bring optimism, as Brazil’s financial markets have shown in 2016.
Why Did Inflation Rates Ease for Brazil and Chile?
Brazil’s inflation rate slowed for the second straight month in March. The annual inflation rose by 9.4%—compared to 10.4% in the previous month.
A Puzzle: What’s China Doing with So Much Copper?
While China is the largest copper consumer, it isn’t self-sufficient in its raw material needs.
Chilean Peso Falls on Weak Economic Data
The Chilean peso depreciated against the US dollar on January 29, 2016, as reports indicated that copper production fell 5.5% in December 2015.
Mexican Peso’s Fortunes Are Linked to the US Dollar
The Mexican peso and US dollar are interconnected. Due to bullish forecasts in the US dollar, there are high expectations for the Mexican peso in 2016.
Mexican Peso Fell despite Positive Domestic Data
The Mexican peso fell against the US dollar on December 21, 2015. It fell even though October’s retail sales were close to the consensus forecasts.
An Investor’s Guide to Southern Copper
Southern Copper (SCCO), incorporated in 1952 as Southern Peru Copper, acquired Minera Mexico in 2005 to become the largest mining company in Mexico and Peru.
Understanding Southern Copper’s Production Process
Southern Copper uses an SX-EW production process for a large portion of its production. The SX-EW process uses acid produced as a byproduct in copper smelting to produce copper.
Southern Copper’s Geographical Diversification
Mexico was Southern Copper’s (SCCO) biggest market in 2014, followed by Peru, Latin America, the United States, Asia, and Europe.
Could Southern Copper Offer Stable Returns in Global Sell-Off?
Southern Copper (SCCO) has managed to hold its ground amid the global sell-off in metal shares. Based on September 15 closing prices, SCCO’s stock is down only about 2% this year.
Brazilian Real Nears All-Time Lows in 2015
The Brazilian real has been trading on a weaker note against the US dollar in the last year after depreciating by more than 40% against the US dollar.
Brazilian Real Falls after Credit Rating Downgrade
The Brazilian real underwent massive depreciation of 1.89% against the US dollar on September 10 after the country’s credit rating went from “investment-grade” to “junk” status the night before.
Brazilian Real Is Trading near 12-Year Lows
The Brazilian real fell by 0.88% against the US dollar on August 28, 2015. GDP data for the second quarter confirmed a contraction in the economy.
Will Freeport-McMoRan’s Growth Projects Pay Off?
Freeport is pursuing the Cerro Verde mill growth project in Peru. Freeport owns a 53.56% stake in Cerro Verde. It’s expected to become the world’s largest copper concentration capacity.
Copper Production in Peru, Chile Falls in First 3 Months of 2015
According to the World Bureau of Metal Statistics, Peru’s refined copper production declined in the first three months of the current year.
China Is Investing Beyond Its Borders to Secure Copper Supply
China has only 4% of the world’s copper supply, but it accounts for more than 42% of global copper consumption. Latin America is China’s largest copper supplier.
Why Should Investors Track Chinese Copper Imports?
Higher Chinese copper imports are positive for the global copper industry. Imported copper ore is processed further to produce refined copper.
Supply-Side Bottlenecks Lend Support to Copper Prices
Spot copper prices on the LME were trading at $6,356 per metric ton on May 15, 2015. Copper lost some heat in the last few trading sessions.
Is Doctor Copper Healing the Economy?
Analysts see copper prices as a reflection of the health of the global economy. For that reason, copper has been dubbed Doctor Copper.