International Trade
Cargo arrived at
Puerto Cabello:
- Over 200 tons of tractor parts
sent by US General Motors Overseas for its subsidiary in Venezuela.
27 vessels wait to dock, 2 carrying over 35,000
tons of wheat, another 35,000 tons of sugar, and another 6,000 tons of rice.
One other ship laden with 33,000 of white corn for CASA has remained at bay for
over a month awaiting dock assignment. Four more ships are expected to arrive
at port with similar cargo. More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Mas-de-un-mes-en-bahia-tiene-un-buque-con-maiz-2275906/2014/11/04/378625)
US exports to Venezuela down by 23% through
September, at US$ 7.831 billion from US$ 10.165 billion for the same period last
year, according to figures published by the US Department of Commerce. More in
Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/importaciones-desde-eeuu-acumulan-caida-de-23-.aspx#ixzz3IHeYCYUq)
Venezuelan Exporters’ Association (AVEX) reports
non-oil exports are partly paralyzed. AVEX head Ramón Goyo says this
started upon enforcement of a presidential decree through which the transfer of
basic basket staples and products, medicines and other goods to be exported or
extracted towards foreign soil was banned in August. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=41764&idc=3;
El Universal, http://www.eluniversal.com/economia/141106/non-oil-exports-come-to-a-halt-venezuelan-exporters-claim)
Capriles sees no progress through bias toward imports
Miranda Governor
Henrique Capriles Radonski says "the
nation faces an unprecedented economic crisis, which can only be met by
incentives for local production". He adds "we have here a government which is an enemy of domestic producers and
favors foreign producers...They pay them in full, and hamper our own
people...they speak of economic warfare, but the only war here is this failed
system which works against the people". More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/capriles--trayendo-contenedores-con-productos-de-o.aspx#ixzz3IkuWwyV7; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/capriles-aumento-de-hallaca-en-mercal-evidencia-in.aspx)
Logistics
& Transport
Port workers are met with tear gas and pellets at
Puerto Cabello, operations mostly paralyzed
As BOLIPUERTOS port authority workers prepared to set
up a human barrier seeking collective bargaining discussions, they were
dispersed by the National Guard using tear gas and pellets. Several employees
were wounded and detained, among them union leader Mónica Martínez. Operations
were paralyzed, except for frozen food cargo. More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Con-gas-lacrimogeno-y-perdigones-recibieron-a-trabajadores-portuarios-hoy-lunes-Fotos-/2014/11/11/384619; El Universal, http://www.eluniversal.com/economia/141111/en-trifulca-culmino-protesta-de-trabajadores-de-bolipuertos; El Nacional; http://www.el-nacional.com/)
Shipping companies demand improvements in port
operations
Venezuela's Shipping Association (ASONAVIERA) is
calling for "urgent" joint
action between port authorities and carriers to increase port productivity here.
Statistics indicate that the main port of the country, Puerto Cabello, handles
12-14 containers per hour, whereas in neighboring Caribbean ports, such as
Colombia's Cartagena, the indicator is up to 35. More in Spanish: (El
Universal, http://www.eluniversal.com/economia/141109/navieras-reclaman-acciones-para-mejorar-operaciones-en-puertos)
Oil &
Energy
CITGO auction reported proceeding even after minister
says it was canceled
At least three oil companies are still actively
bidding for CITGO Petroleum Corp, the U.S. refining arm of Venezuela's PDVSA,
even after the country's finance minister said that the auction was no longer
going ahead, according to three people familiar with the situation. The
investment bank hired by PDVSA to conduct the sale, Lazard Ltd, has not ended
the sale process, the sources said, and a deadline for a second round of bids
is expected later this month. Any deal for CITGO, which could be worth as much
as US$ 10 billion, could help to reshape the U.S. refining landscape, giving
the winning bidder access to major refining assets in the Midwest and on the
Gulf Coast at a time when U.S. oil production is soaring. The CITGO refineries
are in a position to access supplies of crude from U.S. Shale formations and
imported Canadian crude. Finance Minister General Rodolfo Marco had said in on
Oct. 26 that the sale of CITGO Petroleum “has
been ruled out” and the nation’s President Nicolas Maduro had “affirmed” the decision...but visits to
the Illinois refinery have been made as recently as this week, the sources
familiar with the sale efforts said. (Reuters: http://www.reuters.com/article/2014/11/05/us-citgo-pete-auction-exclusive-idUSKBN0IP06C20141105;
and http://www.reuters.com/article/2014/11/06/us-refinery-sale-citgo-pete-idUSKBN0IQ2AH20141106;
El Universal, http://www.eluniversal.com/economia/141105/reuters-bid-for-venezuelas-subsidiary-citgo-continues)
Atlantic Basin Refining to buy, restart HOVENSA St.
Croix Refinery
A little-known entity, Atlantic Basin Refining, has
agreed to buy the shuttered HOVENSA LLC oil refinery in St. Croix and restart
it with a 300,000 barrels-a-day capacity to handle crude from the U.S. shale
boom, according to a statement on Monday. The agreement between ABR and plant
owners Hess Corp and Petroleos de Venezuela (PDVSA) is subject to a vote by the
Legislature of the U.S. Virgin Islands, scheduled for Nov. 12. The details of
the agreement and information on the project's financial backers remain
well-guarded. (Reuters, http://www.reuters.com/article/2014/11/10/oil-atlantic-basin-refining-hovensa-idUSL2N0T00SS20141110)
Mexico Energy Minister to meet Venezuela's Ramirez,
Saudi's al-Naimi
Mexico's Energy Minister Pedro Joaquin Coldwell will
meet with Venezuela's visiting Foreign Minister Rafael Ramirez on Friday and
with Saudi Oil Minister Ali al-Naimi next week, officials said, against a
backdrop of weaker global oil prices.
Former Venezuelan energy minister and head of state
oil company PDVSA, Ramirez remains Venezuela's OPEC delegation head and has led
calls for an emergency meeting due to global price declines. Ramirez met
al-Naimi on Wednesday as part of a climate change conference on Venezuela's
Margarita Island, but they offered no comment on oil markets afterward.
(Reuters, http://www.reuters.com/article/2014/11/07/oil-saudi-venezuela-mexico-idUSL1N0SX2EZ20141107)
Venezuela’s export barrel averaged US$ 72.80/bbl. this
week, down US$ 2.99/bbl., according to the
Ministry of Oil and Mining. The average-to-date this year is US$ 93.26/bbl. (Veneconomy,
http://www.veneconomy.com/site/index.asp?ids=44&idt=41793&idc=4)
PDVSA President says company will maintain production
during 2015
PDVSA President Eulogio del
Pino has announced that the company will keep on pumping around 3 million
barrels per day. "Our plan for 2015
is to maintain our production and develop our capacity to react in whatever
global scenario." He said crude
oil exports will be around 2.528 million BPD, and the domestic market will get
some 766,000 BPD. More in Spanish: (Diario 2001, http://www.2001.com.ve/en-la-agenda/pdvsa-mantendra-su-produccion-para-2015.html; El Mundo, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/venezuela-seguira-diversificando-sus-envios-petrol.aspx, http://www.elmundo.com.ve/noticias/petroleo/pdvsa/pdvsa-mantendra-produccion-de-3-millones-de-barril.aspx; Notitarde, http://www.notitarde.com/Economia/Del-Pino-Pdvsa-seguira-con-el-mismo-nivel-de-produccion-para-2015-2277246/2014/11/06/383036; AVN; http://www.avn.info.ve/contenido/pdvsa-mantendrá-producción-3-millones-barriles-diarios-para-2015)
Venezuela says it will keep on boosting oil exports to
China, India
Venezuela will continue to boost oil exports to China
and India to capitalize on their booming economies, says Oil Minister Asdrúbal
Chávez. "That's where we have to
keep building our markets because those are the countries that have the biggest
year-on-year growth," he told a parliamentary committee. "We're going to keep increasing our shipments
to Asia: India and China," he added, without specifying figures.
(Reuters, http://www.reuters.com/article/2014/11/06/venezuela-oil-asia-idUSL1N0SW1I820141106)
Commodities
Venezuela's shrinking industrial production
Data from the National Statistics Institute (INE) at
the close of 1998 shows that back then 11,117 industrial facilities were in
full production, providing jobs for 449,636 workers. By 2007 the number of
private companies in industry had dropped to 7,093, employing 345,168 workers.
The number of expropriated industries and businesses has increased since 2008,
the last year INE published updated figures. The decline in industrial activity
has continued to this day, while expropriated or nationalized businesses have
such enormous costs and negligible revenue, if any, that they have to be
subsidized by the government resulting in significant financial losses. (El
Universal, http://www.eluniversal.com/nacional-y-politica/141108/venezuelas-shrinking-industrial-production)
Car assembly in Venezuela ends at 15,000 units
According to data from the Venezuelan Automotive Chamber
(CAVENEZ), between January and October, the seven car assembly plants operating
here barely managed to assemble 12,010 cars, 81.6% lower than the amount of
units assembled in the same period in 2013. Based on this data, the Venezuelan
car industry forecasts car assembly would hit about 15,000 units by the end of
the year. It would be the worst record in history, even lower than the 2003
performance, the year of the "oil
strike," when the country's economy sharply contracted. CAVENEZ's
report shows that each month of this year, at least one car assembly plant has
been forced to come to a halt after running out of assembling material. (El
Universal, http://www.eluniversal.com/economia/141110/car-assembly-in-venezuela-ends-at-15000-units)
TOYOTA to maintain its operations here
Steve St. Angelo, Executive President of TOYOTA Latin
America, says: "We will remain here,
but it must be said we have difficulties and I have challenged our team to be
more competitive in low volumes...I am not calling our plant in Venezuela a
loss, and I am not giving up". The TOYOTA Cumaná plant in Eastern
Venezuela will produce a little over 3,000 units this year, one third of its
production in 2013. More in Spanish: (Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/toyota-mantendra-sus-operaciones-en-el-pais.aspx#ixzz3Ikwe2ip4)
Two pre-cooked flour manufacturing plants have used up
corn inventories, one is MONACA
and the other DAMASECA, while two POLAR plants have very few days of
inventories left, says the Corn Flour Industrialists’ Association (VENMAÍZ).
The plant in Turmero only has six days left while the plant in Chivacoa has two
weeks left. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=41780&idc=3)
SIDOR claims rise in liquid steel production
Tomás Schwab, President of
the SIDOR state owned steel plant, claims October production was 126,512 tons
of liquid steel, 27% above its goal, according to a report by the government
news agency, AVN. More in Spanish: (AVN; http://www.avn.info.ve/contenido/sidor-superó-27-meta-producción-acero-líquido-prevista-para-octubre)
... but metal working plants are stopping production
lines
Miguel Eseverri, President of the Metalworking and
Mining Industrial Association, reports his affiliate companies have stopped
production lines due to the lack of basic supplies, primarily steel and
aluminum caused by low production at the state run Guayana industrial complex.
Idle capacity averages 30-40%. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/gremios/metalurgicos-detienen-lineas-de-produccion.aspx#ixzz3INUhjhpL; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/metalurgicos-detienen-lineas-de-produccion.aspx)
CLOROX does not approve the government takeover,
lawsuit looms
CLOROX has confirmed that it's Venezuelan affiliate
will be managed by a special board appointed by the government here. It said
these measures were taken "without
the consent or participation" of the company, and it will not approve
or participate in resuming production at its Venezuelan facilities. This could
open the way to another international litigation case against Venezuela. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/empresas/clorox-venezuela-senala-que-no-aprueba-reinicio-de.aspx#ixzz3INVQJoQx;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/reactivan-linea-de-envasado-de-planta-de-clorox-en.aspx;
El Universal, http://www.eluniversal.com/economia/141107/clorox-no-descarta-iniciar-controversia-con-venezuela)
Economy
& Finance
Economic Affairs VP rules out devaluation in 2015
General Rodolfo Marco Torres, Venezuela's Vice
President for Economic Affairs and Minister of Economy and Finance, has said that
"devaluation is not planned for next
year." But added, "that
type of information cannot be announced beforehand." Despite remarks
by Venezuelan authorities three months ago that a unification of the foreign
exchange system was under evaluation, due to the management complications of
three different foreign exchange rates, the Minister now said "there are assurances that the foreign
exchange system is to remain to cover the needs" of all sectors. As
for crude oil prices, the Finance Minister "hopes" they will raise or remain steady. "This week it ended at USD 72. Let us wait,
we hope it climbs or stays there," he said. (El
Universal, http://www.eluniversal.com/economia/141110/venezuelan-economy-vp-rules-out-devaluation-in-2015)
.....says no further indebtedness for current
expenditure is planned for next year
General Marco Torres has told the National Assembly
that the Annual Debt Law for 2015 provides the government "will not go into debt for current
expenditures". (AVN; http://www.avn.info.ve/contenido/ministro-marco-torres-no-habrá-endeudamiento-para-gasto-corriente-2015-0;
El Nacional; http://www.el-nacional.com/)
...and reports over US$ 9 billion in debt has been
paid out this year
The Minister also said the
government has paid out over US$ 9 billion in capital, interest and foreign
public debt service, including US$ 5 billion in sovereign and PDVSA bonds that
came due in October. He said the government has
sufficient resources in bolivars and FOREX to meet obligations. More in Spanish: (El Mundo, http://www.elmundo.com.ve/noticias/economia/mercados/gobierno-ha-cancelado-mas-de--9-000-millones-en-de.aspx#ixzz3INTxDTtf;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/gobierno-ha-cancelado-mas-de-9-000-millones-en-deu.aspx;
El Nacional; http://www.el-nacional.com/)
SCOTIABANK takes US$176 million charge on Venezuela
SCOTIABANK has announced that it expects to take a US$451
million pre-tax, or US$341 million after tax, charge to its 4th Quarter 2014
earnings. ScotiaBank has adopted a revised exchange rate used to translate
unremitted dividends and the carrying value of its 26.6% interest in Banco del
Caribe in Venezuela. As a result, the Bank expects to record a charge to income
of approximately US$ 47 million related to unremitted dividends and record a
write-down through Other Comprehensive Income of approximately US$ 129 million
related to the carrying value of its Venezuelan investment. (Latin American
Herald Tribune, http://www.laht.com/article.asp?ArticleId=2359732&CategoryId=10717)
Politics and
International Affairs
UN questions Venezuela over alleged cases of torture
against dissenters, amid criticism over armed civilian groups
The United Nations Committee against Torture is
questioning Venezuela over reports that more than 3,000 people detained during
the anti-government protests staged in February suffered tortures or cruel or
degrading treatment.
For the first time in 12 years, Venezuela appeared before the United Nations Committee against Torture. The committee is to determine whether the Venezuelan State complies with the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. Alarms have rung at the United Nations over the presence here of armed civilian groups and the increasing role of the military in matters beyond national security. Denmark's Jens Modvig - one of two officials assigned to prepare the report - asked at the hearings: "What is the position of the government on the "collectives", armed groups that operate outside the law but are in possible collusion with law enforcers? ¿Does it foresee forbidding and dismantling these groups?. (El Universal, http://www.eluniversal.com/nacional-y-politica/141106/un-questions-venezuela-over-alleged-cases-of-torture-against-dissenter; and more in Spanish: http://www.eluniversal.com/nacional-y-politica/141107/en-la-onu-critican-existencia-de-grupos-civiles-armados; El Nacional; http://www.el-nacional.com/)
For the first time in 12 years, Venezuela appeared before the United Nations Committee against Torture. The committee is to determine whether the Venezuelan State complies with the Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. Alarms have rung at the United Nations over the presence here of armed civilian groups and the increasing role of the military in matters beyond national security. Denmark's Jens Modvig - one of two officials assigned to prepare the report - asked at the hearings: "What is the position of the government on the "collectives", armed groups that operate outside the law but are in possible collusion with law enforcers? ¿Does it foresee forbidding and dismantling these groups?. (El Universal, http://www.eluniversal.com/nacional-y-politica/141106/un-questions-venezuela-over-alleged-cases-of-torture-against-dissenter; and more in Spanish: http://www.eluniversal.com/nacional-y-politica/141107/en-la-onu-critican-existencia-de-grupos-civiles-armados; El Nacional; http://www.el-nacional.com/)
Amnesty International has urged Venezuelan authorities
to comply with the recommendation from the UN
Work Group on Arbitrary Detentions and release Leopoldo López immediately. The
NGO said it was concerned López’ imprisonment was motivated by political
reasons. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=41767&idc=1)
...and the Lopez trial gets postponed for a second time. His lawyers said Judge
Susana Barreiros has not held sessions for the past 20 days in order to avoid
responding to the UN resolution. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/141105/aplazan-por-segunda-vez-seguida-el-juicio-contra-lopez)
Business fears further persecution
FEDECÁMARAS President Jorge
Roig has denounced that the new "Economic
Intelligence Commission", created by President Maduro points to
further "persecution" of
business. "They continue to
"intimidate investors, businessmen". He called the inclusion of
the secret intelligence service into the Commission "surprising". More in Spanish: (El Universal, http://www.eluniversal.com/economia/141105/temen-persecucion-contra-el-sector-empresarial)
Opposition braces for early elections
Tomás Guanipa, Secretary
General of the Primero Justicia party, says unofficial reports indicate the
government may week to advance legislative elections to June or July 2015 and
the opposition must prepare to secure a majority in the National Assembly. More
in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/141111/guanipa-hay-que-alistarse-para-adelanto-de-comicios)
Top court candidates up to 33
The Judicial Nominations Committee has received 33
nominations to justices of the Supreme Tribunal of Justice (TSJ), 16 women and
17 men. Final designations will be sent to the National Assembly for approval
by two thirds of the legislators. (El Universal, http://www.eluniversal.com/nacional-y-politica/141110/venezuelan-top-court-candidates-total-33)
Samper calls for a "social covenant" in Venezuela
Ernesto Samper, Secretary
General of the Union of South American Nations (UNASUR) says Venezuela needs a
"great social covenant...not just a
political dialogue on election guarantees". He says it should involve
"all political sectors, social
organizations, farmers and all workers...to take steps toward necessary
economic adjustments". (El Universal, http://www.eluniversal.com/nacional-y-politica/141110/unasur-secretary-venezuela-needs-a-great-social-pact)
Venezuela seeks Colombian extradition of Serra's
alleged killer
Interior Minister Admiral Carmen Meléndez has announced
that the Venezuelan Foreign Ministry is asking Colombia to extradite Leiva
Padilla Mendoza, a Colombian charged with the murder of pro-government National
Assembly legislator Robert Serra - "so
that in a few days we may have him in Venezuela". Padilla was arrested
last week by Colombian authorities in Cartagena. President Nicolás Maduro has
made unsubstantiated claims that the local "extreme right" paid Colombian paramilitaries headed by Padilla
US$ 500,000 to murder the congressman. Serra's chief escort is one of more than
10 arrested and confessed details and planning of the murder. More in Spanish:
(Infolatam, http://www.infolatam.com/2014/11/09/venezuela-espera-la-extradicion-desde-colombia-del-presunto-asesino-de-serra)
Bogotá terms criticism of meetings with Venezuelan
opposition "exaggerated"
Colombian Foreign Minister, María Ángela Holguín, believes
Venezuelan officials exaggerate when they criticize those who meet with the
Venezuelan opposition. "I believe
they exaggerate when they criticize not only us, but also the international
community overall, for meeting with any representative of the Venezuelan
opposition," Holguín said. Holguín's comments followed remarks made Captain
Diosdado Cabello, the Speaker of the National Assembly, condemning Bogotá's
Ambassador to Venezuela, Luis Eladio Pérez, for meeting with Venezuelan
opposition leaders. (El Universal, http://www.eluniversal.com/nacional-y-politica/141106/bogota-terms-exaggerated-criticism-of-meetings-with-venezuelan-opposit)
Colombia temporarily suspends MERCOSUR visas for
Venezuelan citizens
The Colombian government has
temporarily suspended visas for Venezuelan citizens under the MERCOSUR
agreement since it has not received reciprocity from Venezuela under the
migratory agreement is signed in 2012 when it entered the organization.
Venezuelans must now obtain a consular visa to visit Colombia. As part of the advantages of Venezuela's membership in
Mercosur, in terms of the "Free
Residence Area with right to work," Venezuelans have been applying for
a special visa (TP10) granting holders the right to stay and practice any
profession in Colombia for up to three years. (El Universal, http://www.eluniversal.com/nacional-y-politica/141110/colombia-temporarily-suspends-unasur-visas-to-venezuelans)
Brazil complains over unannounced visit of Venezuelan
Minister Jaua
Brazilian Foreign Minister Luiz Alberto Figueiredo
expressed his government's discomfort of his government over a visit to Brazil by
Elías Jaua, Venezuelan Minister for Communes and Social Movements Elías Jaua in
late October, without giving Brazilian authorities proper notice. Figueiredo
complained to Venezuela's Chargé d'Affaires about the visit and the fact that Jaua
had signed cooperation agreement with the Landless Worker's Movement (MST)
during his stay in Brazil, something that can even be considered as "meddling in internal affairs." (El
Universal, http://www.eluniversal.com/nacional-y-politica/141106/brazil-complains-about-unannounced-visit-of-venezuelan-minister-jaua;
and more in Spanish: http://www.eluniversal.com/nacional-y-politica/141107/canciller-brasileno-acudira-al-congreso-a-explicar-caso-jaua)
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.
