International Trade
Incoming cargo at Puerto Cabello
- Over 7.038 tons of
chicken and beef from JBS S/A for the government's Corporación de
Abastecimientos y Servicios Agrícolas (CASA)
- 521 tons of frozen beef
from Marfrig Alimentos S.A., Minerva S.A. y Baldony S.A. for Consorcio
Comeimport, Inversiones 6308, Importaciones y Exportaciones Mounty and
Makro
- Over 200 tons of prefabricated
buildings from Lenard Overseas for PDVSA Industrial
More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Mas-de-7-mil-toneladas-de-carne-y-pollo-llegaron-al-puerto-2153154/2014/05/03/324652)
Venezuela and Vietnam review standing agreements
Vietnam's Foreign Affairs Vice Minister Ha Kim Ngoc is
currently in Venezuela seeking to deepen strategic cooperation and review the
status of major joint projects in the sectors is reviewed: energy, agriculture,
aquaculture, electricity, industry and trade. More in Spanish: (AVN; http://www.avn.info.ve/contenido/venezuela-y-vietnam-revisar%C3%A1n-acuerdos-materia-energ%C3%A9tica-agr%C3%ADcola-e-industrial;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/mundo/venezuela-y-vietnam-revisan-acuerdos-en-materia-en.aspx;
El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/venezuela-y-vietnam-revisaran-acuerdos-en-materia.aspx;
El Nacional, http://www.el-nacional.com/mundo/Venezuela-Vietnam-revisaran-energetica-industrial_0_403159829.html)
Oil &
Energy
The price of Venezuelan oil drops again
Venezuela's weekly oil basket stayed below the
country's desired U$D 100 a barrel floor and fell as markets around the world
seemed to be well-supplied. According to figures released by the Ministry of
Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos
de Venezuela S.A. (PDVSA) during the week ending May 2 was U$D 96.50, down U$D 1.21
from the previous week's U$D 97.71. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2126767&CategoryId=10717)
Ramírez says low gasoline prices are "burning away the future"
Government officials have for some time been
considering adjusting domestic oil consumption prices and speak of public
consultation on the matter. In a recent interview, Economic Affairs Vice
President Rafael Ramírez said: "These
prices make no sense...with these gasoline prices we are burning away the
future." More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/ramirez---con-el-precio-de-la-gasolina-nos-estamos.aspx#ixzz30q2HAC1v)
Commodities
Pharmaceuticals scarcity level at 50%
Based on data supplied by the Central Bank, by the end
of March, shortages of pharmaceutical products rose to 50%. The report verifies
the day-to-day plight of patients. (El Universal, http://www.eluniversal.com/economia/140505/scarcity-of-pharmaceutical-products-at-50-in-venezuela)
FORD halts operations in Venezuela due to lack of
parts
FORD Motor Venezuela is stopping all activity in Venezuela
as scarce inventories available have now been used up. It hopes to start
operating again on May 30th but there is no assurance it will by then have
received the needed vehicle components. It will continue to meet payroll
commitments during the shutdown. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/ford-paraliza-operaciones-en-venezuela-por-falta-d.aspx#ixzz30q0T76GL; El Mundo, http://www.elmundo.com.ve/noticias/negocios/automotriz/ford-paraliza-operaciones-por-falta-de-insumos.aspx)
Economy
& Finance
CITI has released its April 2014 commentary on
Venezuela (attached) with the following conclusions:
- Venezuela is in a downward spiral, economically,
socially and politically, with no end in sight
- The economy is becoming more rather than less
dependent on oil
- The private sector is reducing investment, as
much by necessity as choice, further
- reducing the economy’s productive capacity
- The exchange rate regime can best be described as
‘dysfunctional’, with rapid
- inflation and a major shortage of foreign
exchange likely to dictate further
- significant changes over the next few years
- The shortage of foreign exchange will lead
foreign companies to reduce the scale
- of operations in the country and to accept large
balance sheet losses
Fitch downgrades Venezuela's CITGO outlook to negative
Fitch Ratings has affirmed the Issuer Default Ratings
(IDR) for CITGO Petroleum Corporation (CITGO) at 'BB-' and the company's senior
secured ratings (including the revolver, term loans, and fixed-rate industrial
revenue bonds [IRBs]) at 'BB+'. The Rating Outlook has been revised to Negative
from Positive. The recent downgrade of CITGO's ultimate parent PDVSA is the
main reason for the revision in Outlook at CITGO. Approximately U$D 1.08
billion in balance sheet debt is affected by today's rating action. (Latin
American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2111330&CategoryId=10717)
Bond market prices lower risk of Venezuela default
Recent credit default swap (CDS) spread movement for
Petroleos de Venezuela (PDVSA) is copying Venezuela's and credit protection for
the oil giant still being priced at stressed levels, according to Fitch
Solutions in its latest CDS Case Study Snapshot. Five-year CDS on PDVSA have
tightened 38% since mid-February and 19% over the past month, a trajectory
similar to Venezuela. 'The CDS market is
currently charging a 24% premium for credit protection on PDVSA's debt, as
compared to the sovereign, up from 17%,' says Director Diana Allmendinger. (Latin
American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2110859&CategoryId=10717)
Politics
Poll shows 79.5% think Venezuela is doing badly
Eight out of 10 Venezuelans believe the country's
situation is negative, according to a nationwide poll conducted by research
firm DATANÁLISIS. Based on a poll taken between March 31 to April 20, 79.5%
believe the country's situation is bad, 18.5% said it is good, and 2% made no
comments. Half of those identified as Government supporters described the
situation as bad. The figure goes up among dissenters and those who do not take
any sides: 96.9% and 89.6%, respectively. (El Universal, http://www.eluniversal.com/nacional-y-politica/140505/a-total-of-795-thinks-venezuela-is-doing-bad)
"If Maduro
wants to quit the talks, then he should just say so"
Just as a signature collection process for a proposed
amnesty law was launched nationwide, Ramón Guillermo Aveledo, Secretary General
of the Democratic Unity Conference (MUD) replied to a comment by President
Nicolás Maduro accusing the opposition coalition of "blackmailing" the government by demanding concrete results
from bilateral meetings started on April 10. "We‘ve been granted short-term credit by the people; that's what I refer
to when I talk about showing results. That's no blackmail, it's a practical
thing. In the presence of results, the promissory note will be extended by the
holder, i.e. the people. Signs of credibility will be most needed along the
long road ahead," Aveledo says. (El Universal, http://www.eluniversal.com/nacional-y-politica/140503/if-maduro-wants-to-quit-the-talks-then-he-should-just-say-so)
Maduro bodyguard shot dead
29 year-old Lieutenant Marco Cortez, a
member of President Maduro's bodyguard unit was shot dead from another running
vehicle while he was driving on a Caracas freeway, with his wife - who was
unharmed. He was pronounced dead on arrival at the Military Hospital. He also
worked on the security detail for the late President Chavez. One week ago the
bullet riddled body of former Director of Intelligence, Eliécer Otaiza, was found
in a little travelled road near Caracas. Maduro claimed he was the victim of
former politicians now living in Miami. More in Spanish: (Infolatam)
Regime says 58 foreigners among unrest detainees
Interior Minister General Miguel Rodriguez Torres told
a news conference that 58 foreigners had been arrested on suspicion of inciting
anti-government protests and violence that have rocked the nation for the last
three months. He said Colombians, an American, a Spaniard and an Arab were
among the scores of "mercenaries" rounded up before and during
demonstrations against the socialist government. He showed reporters numerous
flow-charts and photos of alleged meetings, phone calls and plotting. (Reuters,
http://www.reuters.com/article/2014/05/02/us-venezuela-protests-idUSBREA410TN20140502)
US Senate to explore human rights abuses in Venezuela
The US House Committee on Foreign Affairs has
scheduled a hearing for Thursday, May 8, on allegations of human right abuses taking
place during the street protests that have taken a death toll of 41 in
Venezuela. The session will be attended by Roberta S. Jacobson, the United
States Assistant Secretary of State for Western Hemisphere Affairs; Moisés
Naím, an expert with the Carnegie Endowment for International Peace; José
Miguel Vivanco, the director of the division for the Americas of NGO Human
Rights Watch, and ex US Ambassador to Venezuela, Patrick Duddy. (El
Universal, http://www.eluniversal.com/nacional-y-politica/140502/us-senate-to-explore-human-rights-abuses-in-venezuela)
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