Latin America and the Caribbean will maintain the recovery that began in the second half of 2009, following the international economic crisis and are poised to grow 4.7% in 2011 with a strong boost from domestic demand, according to the latest report from the Economic Commission for Latin America and the Caribbean.
Economic activity in Brazil expanded 0.17% in May over the previous month, the slowest pace this year, according to the Central Bank’s seasonally adjusted index. As direct reference growth in April was 0.44%. However the May figure is 4.25% over a year ago.
Brasil Foods, Brazil’s biggest maker of TV dinners and frozen meat products, won conditional approval of its 3.8 billion US dollars takeover of rival Sadia SA as Brazilian regulators ordered it to stop using a top brand and sell some assets to ensure domestic competition.
Europe’s debt crisis has entered a new phase and policy makers must come up with a “clear” response to stop the contagion that threatens the region’s single currency, said the European Central Bank’s incoming President Mario Draghi.
Members of the European Parliament discussing the agriculture budget said that compensation for beef farmers that could face Mercosur competition, if a trade agreement is finally reached, “is not enough” and anticipated that “we will not accept sweeteners in this area”.
Federal Reserve Chairman Ben Bernanke said the central bank is ready to ease monetary policy further if the economy weakens and inflation moves lower, suggesting policymakers are actively mulling further stimulus.
Brazilian retail tycoon Abilio Diniz has suspended plans to merge his supermarket chain Grupo Pao de Acucar with the local arm of France's Carrefour. The move comes after the Brazilian state development bank BNDES and a private fund backed out of supporting the deal.
The Brazilian central bank is comfortable with its inflation forecast for 2011 despite a stronger-than-expected June reading, which spurred speculation that even higher interest rates will be necessary to keep prices in check.
United States industry and agriculture lobbies are again advocating forcefully before Congress on the pending free trade agreement with Colombia claiming the delay is costing market share to a more aggressive Mercosur.
Argentine opposition lawmakers announced on Tuesday that the so called “Congress inflation index” measured by eight consulting agencies increased 1.5% in June. The index is a repeat of May’s 1.5%, and 23.5% in the last twelve months.