International
Trade
Cargo that has arrived at Puerto Cabello:
- 30,000 tons of sugar from Brazil, for Central
Azucarero Portuguesa.
- 30,000 tons of sugar from Brazil, for Banco
Universal.
- 6,000 tons of rice from Guyana, for CASA.
- Over 3,000 tons of auto parts from Ica Intl
Automóviles for Corporación Automotriz ZGT.
- Over 951 tons of food in 39 containers, from
Brazil fro state agency CASA.
- Over 552 tons of soy oil, from Bunge Alimentos,
for CASA
- Over 399 tons of frozen beef, from Sertrading
S.A. for CASA
- Over 275 tons of Chinese fireworks for the
Christmas season, for Pirotecnia Premium C.A. and Royal Light And Fire.
- 74 tons of toys in 12 containers, from China, for
Festimoda C.A., Vibración, among others.
- Smaller quantities of clothing, shoes and tires
have also arrived.
More in Spanish: (Notitarde, http://www.notitarde.com/La-Costa/Llegaron-al-puerto-mas-de-275-toneladas-de-fuegos-artificiales-2292495/2014/11/26/409319/;
http://www.notitarde.com/La-Costa/Un-total-de-60-mil-toneladas-de-azucar-llegaron-al-puerto-local-2291802/2014/11/25/407147/;
http://www.notitarde.com/La-Costa/En-la-bahia-hay-33-buques-esperando-entrar-al-puerto-local-2290924/2014/11/24/404967/)
Shippers say Puerto Cabello slowest port in the
Caribbean; government owes them US$ 137.8 million
Eddy Meayke, President of Venezuela's Shipping
Association, says the problem at the Puerto Cabello terminal is that the
handling of containers is extremely slow, and causes delays and losses to
shipping lines. In some cases shippers
have been forced to leave cargo at transit points such as Panama and Cartagena.
He says there has been no meeting with the management of the port authority,
BOLIPUERTOS, in order to help shippers and authorities to plan jointly, and
points out that conditions are better at La Guaira. Meayke says other Caribbean
ports offload at a rate of 35-40 movements per hour, and in "Puerto Cabello it is at best 8 movements per
hour". He also reports the
government owes the main foreign shipping companies that service Venezuela
around US$ 137.8 million due to delays in returning standard and refrigerated
containers, and says a situation similar to the crisis with airlines could
emerge here. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/buques-alimentos-podido-descargar_0_526147540.html)
Logistics
& Transport
Venezuela suspends private flights in security
operation
Venezuelan authorities has halted flights by private
jets leaving from seven airports in a campaign to crack down on drug
trafficking and review flight permits. The operation did not affect commercial
flights at the country's main airport outside Caracas. Standing on an airstrip
around dawn, Vice President Jorge Arreaza told state TV the efforts were meant
to "eradicate the illicit
trafficking of drugs as well as the illegal use of commercial or private planes."
(Reuters, http://www.reuters.com/article/2014/11/27/us-venezuela-flights-idUSKCN0JB1OF20141127)
Oil &
Energy
Venezuela is getting ready to face “hard times” after the collapse of oil prices, says PDVSA’s Chief
Eulogio del Pino. He claims the government is preparing “for the worst
scenarios” and warned “complicated times” are ahead. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=42036&idc=4)
Venezuela to keep seeking 'fair' oil price despite
OPEC reverse, says countries can act individually
Venezuela will maintain contact with non-OPEC
countries to seek a "fair"
global oil price, says Foreign Minister Rafael Ramirez, despite OPEC's refusal
to cut output as the country had aggressively pushed for. Saudi Arabia blocked
calls from poorer members of the OPEC oil exporter group for production cuts to
arrest a slide in global prices, sending benchmark crude plunging to a fresh
four-year low. The decision is a blow to Venezuela's flailing economy, widely
believed to be in recession, and also highlights the country's diminished
influence in OPEC, which it helped found. Ramírez also said several OPEC member
nations may deal with price fluctuations
individually, and not as organization member. (Reuters, http://www.reuters.com/article/2014/11/27/opec-meeting-venezuela-idUSL2N0TH13L20141127; El Universal, http://www.eluniversal.com/economia/141127/venezuela-to-continue-seeking-fair-oil-price; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=42037&idc=4; Bloomberg, http://www.bloomberg.com/news/2014-11-27/venezuela-to-propose-opec-output-cut-amid-2m-barrel-glut.html; and more in Spanish: El Nacional, http://www.el-nacional.com/economia/Ramirez-Planteamos-miembros-OPEP-individual_0_527347382.html,
Correo del Orinoco, http://www.correodelorinoco.gob.ve/multipolaridad/rafael-ramirez-posicion-venezuela-es-defender-siempre-un-precio-justo-para-nuestro-petroleo/,
Últimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/ramirez-seguiremos-buscando-precio-justo-del-petro.aspx;
Panorama, http://panorama.com.ve/portal/app/push/noticia134378.php)
Venezuela sets final CITGO bids for December
Bankers representing Venezuela have set a date for
prospective buyers to submit revised offers for CITGO Petroleum Corp, a
subsidiary of state-run oil holding Petróleos de Venezuela (PDVSA), according
to people familiar with the matter, despite denials by Finance Minister General
Rodolfo Marco Torres. Lazard Ltd, the investment bank hired by PDVSA to explore
a sale of CITGO, has set a late-December deadline for new offers, three people
familiar with the situation said this week, Reuters reported. (El
Universal, http://www.eluniversal.com/economia/141126/venezuela-sets-final-citgo-bids-for-december)
CONOCO says PDVSA sells CITGO to avoid paying
arbitration awards
Venezuela's state-run oil company Petróleos de
Venezuela (PDVSA) is using the sale of its CITGO Petroleum Corp refining assets
to hinder the ability of CONOCOPHILLIPS to collect an expected arbitration
award, the US oil company said in a Texas court filing. Evidence indicates
PDVSA is liquidating its CITGO interests "to remove the proceeds from the United States to Venezuela or elsewhere
with the specific intent to hinder, delay or defraud its creditors,"
CONOCO said in a petition for court approval to investigate that claim. (El
Universal, http://www.eluniversal.com/economia/141127/conoco-says-pdvsa-sells-citgo-to-avoid-paying-arbitration-awards)
El Palito Refinery is processing at one third capacity
- some 52,000 bpd since its FCC unit was reactivated two weeks ago, according
to union leader Marcos Sabariego. He says that before the FCC was stopped, the
refinery was producing between 60,000 and 80,000 bpd. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=42039&idc=4)
Commodities
Steelmaker SIDOR's production down 13.3% from
2013
José Luis
Hernández, President of the steelmakers union, reports the plant is showing a
sustained decline in its production levels since 2008. State-run SIDOR might
end the year with an output of 1.3 tons of liquid steel, 13.3% under the 1.5
million tons reported in 2013. The union leader says the steelmaker is
reporting a sustained decline in its production levels since 2008. He explained
that the factory has an installed capacity to produce 4.6 million tons of
liquid steel; however, due to several factors, operations have been reduced
gradually and systematically over the last years. (El Universal, http://www.eluniversal.com/economia/141126/production-at-venezuelas-steelmaker-sidor-down-133-from-2013)
Economy
& Finance
Venezuela's public sector foreign assets estimated at
USD 16 billion
Barclays Capital reports that Venezuela's public sector
foreign assets amount to US$ 16.2 billion, including the available balance in
the National Development Fund (FONDEN) and the Chinese Fund, plus deposits in
foreign currency in the Economic and Social Development Bank of Venezuela
(BANDES) and the National Office of the Treasury. However, this is 24% below
US$ 21 billion last year. The firm says that including international reserves,
Venezuela's total assets are US$ 37.8 billion; and reports the government is
again planning a roadshow this year to improve communications with
international investors. (El Universal, http://www.eluniversal.com/economia/141126/venezuelas-public-sector-foreign-assets-total-usd-16-billion;
and more in Spanish El Nacional, http://www.el-nacional.com/economia/Venezuela-planifica-roadshow-ano_0_526747517.html)
China loosens debt terms for Venezuela
China has loosened repayment terms on the nearly US$ 50
billion in loans it has granted Venezuela since 2007. Analysts say Beijing’s
flexibility may buy Maduro more time. Beijing’s largess may appear irrational
given economic policies in Venezuela that do not appear sustainable, says Barbara
Kotschwar of the Peterson Institute for International Economics. “On the other hand,” Ms. Kotschwar said,
“they are so invested in Venezuela’s oil
industry that they may have calculated that a political crisis would have a
negative impact on their return on investment or on Venezuela’s repayment of
loans.” China has scrapped the requirement that Venezuela ship at least
330,000 barrels of oil a day as payment for its existing loans. The reduced
shipments of Venezuelan crude to China reflect the surplus in international oil
markets as well as the Chinese economy’s slower growth, but they also amount to
a mutually beneficial arrangement. Venezuela can divert more of its oil to cash
customers, instead of using it for debt repayment. China, meanwhile, can play
the long game, helping stabilize the Venezuelan economy while keeping the door
open to an important market for its oil-services, drilling, mining, appliances
and construction companies (The Wall
Street Journal, http://online.wsj.com/articles/china-loosens-debt-terms-for-venezuela-1416858616)
Venezuela's economy could contract 4.5% in 2014
Although the
Central Bank is not providing timely economic data, private researchers believe
Venezuela's economy could plunge by 4.5% in 2014. The huge drop in domestic
goods and serves is estimated in a contraction of -4.5%, -4.4% and -3.9% during
the 1st, 2nd and third quarter of this year. More in Spanish: (Notitarde, http://www.notitarde.com/Economia/Extraoficial-Economia-nacional-caeria-45-en-2014-2291687/2014/11/25/407206/)
Venezuelans dollarize Christmas bonuses as bolivar
dives
The bolivar declined the most this month since January
as Venezuelans use their Christmas bonuses to buy U.S. dollars amid the world’s
fastest inflation and shortages of basic goods. A dollar fetched a record
128.18 bolivars on the Colombian border today, compared with the official
exchange rate of 6.3 bolivars, according to dolartoday.com, a rate-tracking
website. The currency has lost 20% of its value in unofficial trading this
month. Consumer price increases and shortages of everything from cars to milk
are pushing Venezuelans to buy greenbacks, said a black market currency trader
in Caracas, who asked not to be named because the activity isn’t legal. The
trader said demand for dollars is the highest he has seen since hyperinflation
in 1996. Money supply rose 6.4% in the second week of November as workers received
their traditional annual bonuses, according to data compiled by Bloomberg. That
was the biggest increase since October 2009. (Bloomberg, http://www.bloomberg.com/news/2014-11-24/venezuelans-dollarize-christmas-bonuses-as-bolivar-dives.html)
Expert says unified FOREX rate could fix economic
mismatch in Venezuela
Economist Tamara Herrera, director of the Síntesis
Financiera think tank, says the government should try to work on a single
foreign exchange rate around VEB 25 per US$, in order to balance the, improve
its cash flow and meet its needs.
The main problems faced by the Venezuelan economy
include multiple foreign exchange rates, State's intervention in international
trade, arbitrary provision of foreign currency, and arrears. (El Universal, http://www.eluniversal.com/economia/141126/single-forex-rate-could-fix-economic-mismatch-in-venezuela)
Venezuela loses another expropriation case at World
Bank’s ICSID tribunal
Chilean airport operator IDC and Swiss partner
FLUGHAFEN Zürich have won an arbitration proceeding against Venezuela that was
originally filed in June 2010 at the World Bank’s International Center for
Settlement of Investment Disputes (ICSID). The dispute originated with the
expropriation of the airport concession on Margarita Island in Venezuela in
2005. The 3 member ICSID arbitration panel found that Venezuela had to pay a
total of US$ 33.7 million for the expropriation, including costs and interest
from the 2005 expropriation. (Latin
American Herald Tribune: http://laht.com/article.asp?ArticleId=2362643&CategoryId=10717)
Government bonds are again on sale
After having paralyzed the domestic sale of government
bonds for 5 months, the Finance Ministry is again putting bonds on the market
for a total of VEB 15.715 billion, in
order to pay for debt service, refinancing and fiscal management. More in
Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/mercados/gobierno-reanudo-emision-de-bonos-de-deuda-interna.aspx#ixzz3KM2jgoPc)
Politics and
International Affairs
María Corina Machado has been subpoenaed by the Prosecutor General to appear on December 3, to
be formally charged with alleged ties with one of the gazillion assassination
attempts reported by Nicolás Maduro. The summons was delivered by the SEBIN
barely hours after Machado questioned the current and potential Electoral Power
for not complying with the Constitution. Machado quickly retorted that she
would present herself to the Prosecutor General, and said the charges were
being brought because she said the Maduro regime is a dictatorship: "I am
being punished for calling things by their name, for saying that there is a
dictatorship in Venezuela", she said. She also called for the resignation
of four out of five directors of the National Elections Council, and demanded
that current Council president Tibisay Lucena and Vice President, Sandra
Oblitas, withdraw their nomination for reelection. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=42035&idc=1; El Universal, http://www.eluniversal.com/nacional-y-politica/141127/dissenter-maria-corina-machado-faces-charges-of-assassination;
Reuters, http://www.reuters.com/article/2014/11/27/us-venezuela-opposition-idUSKCN0JB29K20141127; Bloomberg, http://www.bloomberg.com/news/2014-11-27/venezuela-opposition-leader-defies-maduro-murder-plot-cha.html;
and more in Spanish: (Infolatam: http://www.infolatam.com/2014/11/27/machado-afirma-que-su-imputacion-es-por-decir-que-en-venezuela-hay-dictadura)
The following brief is a synthesis of the news
as reported by a variety of media sources. As such, the views and opinions
expressed do not necessarily reflect those of Duarte Vivas & Asociados and
The Selinger Group.
