November 26, 2015

International Trade

Cargo that has arrived at Puerto Cabello:

• 2500 taxi cabs and 300 trucks from China for state agency CORPOVEX
• 280 containers bearing automobile parts for Chery Venezuela and state agency EMSOVEN (Bolipuertos,
• 414 tons of whole milk for state agency Corporación de Alimentos y Servicios Agrícolas (CASA)
• 378 tons of frozen beef for state agency CASA
• 360 tons of frozen pork for state agency CASA
• 18 tons of rice for state agency CASA
• 5 containers of toys for state agency Corporación Venezolana de Comercio Exterior (CORPOVEX)
• 1027 head of cattle from Nicaragua for state agency Corporación Venezolana de Alimentos (CVAL).

More in Spanish: Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33961; http://www.bolipuertos.gob.ve/noticia.aspx?id=33960; http://www.bolipuertos.gob.ve/noticia.aspx?id=33964; http://www.bolipuertos.gob.ve/noticia.aspx?id=33962; Notitarde, http://www.notitarde.com/La-Costa/Pernil-y-juguetes-arriban-al-Puerto/2015/11/24/713637/; http://www.notitarde.com/La-Costa/Mas-de-2-mil-taxis-y-300-camiones-llegaron-a-Puerto-Cabello/2015/11/25/714712/;  Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/m%C3%A1s-mil-toneladas-alimentos-y-cinco-contenedores-juguetes-llegaron-puerto-cabello; El Mundo, http://www.elmundo.com.ve/noticias/economia/politica/llegaron-280-contenedores-con-autopartes-a-puerto-.aspx; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/2-500-taxis-y-300-camiones-arribaron-a-bolipuertos.aspx)

 

Cargo that has arrived at Bolipuertos La Guaira:

• 109 containers of Basic foods such as basket: oil, corn, wheat, rice, beans and medicines necessities like toilet paper, soap.

More in Spanish: (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33958)

 

Over 800 tons of heavy oil equipment has arrived at Guanta port

854 tons of heavy oil equipment from Korea for PDVSA for the Deep Conversion Refinery in Refinería de Puerto La Cruz. More in Spanish:  (Bolipuertos, http://www.bolipuertos.gob.ve/noticia.aspx?id=33965; El Universal, http://www.eluniversal.com/economia/151126/llegan-al-pais-repuestos-equipos-petroleros-y-taxis; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/llegaron-al-pais-854-toneladas-de-equipos-petroler.aspx)

 

 

Oil & Energy

OPEC not to cut oil output despite possible price drop in 2016

The Organization of Petroleum Exporting Countries (OPEC) is determined to maintain a vigorous crude oil output despite the current financial tension as they warned the oil barrel price could fall to USD 20 in 2106. Any change in the policy would be only possible provided that major non-OPEC producers, especially Russia, embrace some coordinated oil output cuts. "Unless non-OPEC member countries state they are willing to help, I think we will have no change," a delegate of an important OPEC producer told Reuters. "The OPEC will not make a cut on its own account," the delegate added. (El Universal, http://www.eluniversal.com/economia/151125/opec-not-to-cut-oil-output-despite-possible-price-drop-in-2016)

 

The Gas Exporting Countries Forum agreed to defend prices and the market stability. They agreed to demand a fair price that defends investments in the only source of “clean energy” that can guarantee the global energy needs and sustainable development in the short term. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46308&idc=4)

 

Nicolás Maduro said he is all for fair prices to stabilize the gas market during his statements at the 3rd Summit of the Gas Exporting Countries Forum. He also said it would be good to retake Hugo Chávez’ pet project, the Southern Gas Pipeline that would take natural gas to all the countries in South America. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46297&idc=4)

 

 

Commodities

 

Australian company produced its first gold ingot in disputed Essequibo region

Australia´s Troy Resources has produced its first gold ingot in a mine within Guyana's Region 7, which is the Essequibo area under dispute with Venezuela. Clinton Williams, head of Guyana's Geology and Mining Commission, says the company "has surpassed all expectations in complying with their mining agreement" and is operating at 40-50% capacity, with full production expected in 2016. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/empresa-australiana-produce-primer-lingote-de-oro-.aspx#ixzz3sakaYKRa)

 

 

Economy & Finance

 

Maduro awaits elections to launch new economic recovery plan

President Nicolás Maduro says he will launch a plan to grow the nation's economy after the December legislative elections. He also said he will "radicalize the revolution in favor of the people". More in Spanish: (Notitarde, http://www.notitarde.com/Economia/Maduro-espera-legislativas-para-lanzar-nuevo-plan-de-recuperacion-economica/2015/11/25/714840/; El Mundo, http://www.elmundo.com.ve/noticias/economia/politicas-publicas/maduro-anunciara-medidas-economicas-despues-de-las.aspx)

 

Bank of America expects major adjustment in 2016.

In a recently published report, Bank of America Merrill Lynch says: "We expect a major macroeconomic adjustment in 2016, with a large devaluation and correction of large relative price disequilibria. The post-election setting will be conducive to a change in economic policies, especially if a landslide opposition victory leads to a change in government. Debt restructuring could come on the table under a new administration. Main risks. Lack of data raises uncertainty about  fundamentals and liquidity. Exacerbation of relative price disequilibria and deficit monetization can lead to hyperinflation. Suspension of elections or fraud could raise political instability. Continued low oil prices would put added stress on cash flows." At the same time, Francisco Rodríguez, BOFA Representative for the Andean Region has publicly called for unifying foreign exchange rates here, along with creating subsidies for those most impacted.  More in Spanish: (El Universal; http://www.eluniversal.com/economia/151125/proponen-aplicar-sistema-de-unificacion-cambiaria; and full BOFA Report: ATTACHED)

 

Government to extend Income Tax (ISLR) payment waiver for the primary agricultural sector through 2018, says Executive Vice President Jorge Arreaza. The measure does not include the agro-industrial sector. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=46305&idc=2)

 

CONINDUSTRIA: Contracting in Venezuela sank in 2015

President of the Venezuelan Industries Confederation (Conindustria) Juan Pablo Olalquiaga reports that hiring by local enterprises has diminished as compared to 2014,. "This is an attempt not to dismiss the personnel (companies) have taken too long to train," he said. "There was not a significant impact in terms of volume of people hired. When there is not any reduction in employees, they (the companies) seek to keep their payrolls with a minimum production volume, which results in the increase (in prices) of the products launched (to the market)," Olalquiaga explains. (El Universal, http://www.eluniversal.com/economia/151125/conindustria-contracting-in-venezuela-sank-in-2015)

 

 

Politics and International Affairs

 

Maduro puts followers on "alert" following opposition rejection of UNASUR proposal

President Nicolás Maduro has asked "chavistas" to be on "alert" following the opposition's rejection of the proposed UNASUR agreement on abiding by election results. He called upon his followers to not "rest upon their laurels". More in Spanish: (Infolatam: http://www.infolatam.com/2015/11/25/maduro-pide-estar-alerta-por-negativa-opositora-de-firmar-acuerdo-de-unasur/)

 

Pro government gangs shoot opposition leader dead on dais during rally

Pro government followers have shot and killed Luis Manuel Díaz, Regional Secretary General of Acción Democratica in Guárico state in a drive by shooting while Díaz was on the dais of a rally along with Lilian Tintori, wife of imprisoned leader Leopoldo López. The action follows other shooting attacks on opposition campaign activities. UNASUR's Elections Mission condemned the attack and expressed "it's strongest rejection of all types of violence that could hurt the normal development of elections" and called on authorities to determine who was responsible. More in Spanish: (El Universal, http://www.eluniversal.com/caracas/151126/unasur-pide-se-investigue-muerte-de-secretario-de-ad-en-guarico; El Nacional, http://www.el-nacional.com/politica/muerte-AD-Unasur-rechazo-violencia_0_745125738.html)

 

Opposition to propose an Amnesty Law after winning, will not bring more sectarianism

Venezuela's Democratic Union opposition coalition (MUD) has set forth its priorities in case if secures a majority of the National Assembly in upcoming elections. It says their first move will be to promote an Amnesty Law that frees political prisoners such as Leopoldo López and Metropolitan Caracas mayor Antonio Ledezma; and will focus on social and economic matters to seek solutions to the "deep, monstrous and fearsome economic and social crisis". The coalition says it will respect the diverse pro-government factions replace one sectarianism with another, but will rather seek to "reconcile and unite the nation". More in Spanish (Infolatam, http://www.infolatam.com/2015/11/25/oposicion-venezolana-dice-que-primera-medida-si-gana-elecciones-sera-una-ley-de-amnistia/)

 

Guyana seeks international support over border dispute with Venezuela

Guyanese President David Granger has announced he will seek to reaffirm his territorial sovereignty over the Essequibo region, a disputed area with Venezuela. Additionally, he said he would seek international support in the next meeting of the Commonwealth of Nations to be held in Malta on 27-29 November this year. "We have always had the support of the Commonwealth, and we will continue working with our allies in that organization to strengthen their support and convey a message to aggressor states, Venezuela in this case, that we are not alone," Granger said. (El Universal, http://www.eluniversal.com/nacional-y-politica/151125/guyana-seeks-intl-support-over-border-dispute-with-venezuela)

 

Ombudsman to deploy civil servants for parliament vote

Ombudsman Tarek William Saab says he will use 600 civil servants (about 100% of his personnel) in the situation rooms of polling stations nationwide to ensure the proper development of the electoral process during the upcoming parliament vote on December 6. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/151125/venezuelas-ombudsman-to-deploy-civil-servants-for-parliament-vote)

 

Brazil takes a wait and see attitude on Macri's proposal, pending elections

After being asked on the intentions of Argentina's president-elect Mauricio Macri of seeking to apply the "democratic clause" against the Venezuelan regime, Brazilian Foreign Minister Mauro Vieira says "one cannot judge beforehand" what will happen in Venezuela's legislative elections and trusts that UNASUR's "accompanying" mission will be able to work with full freedom. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/151125/brasil-considera-que-no-se-puede-juzgar-a-priori-a-venezuela)

 

Ecuador's Correa charges that Macri is "meddling" in Venezuelan internal affairs

Ecuadorian President Rafael Correa has pointed to apparent "meddling" in Venezuelan internal affairs in referring to remarks by Argentine President-elect Mauricio Macri, who said he would request the Southern Common Market (MERCOSUR) to levy sanctions against the government here. This is "clearly interference in the internal affairs of Venezuela," Correa said. Further, he pointed out that, in his opinion, applying a clause against Venezuela "would not be correct," because democracy prevails in that country, as well as a political project which "has won many elections." (El Universal, http://www.eluniversal.com/nacional-y-politica/151125/ecuadors-correa-notices-macris-meddling-in-venezuelan-internal-affairs)

 

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.