October 29, 2013

Economics & Finance

Parallel exchange rate shoots up as Ramírez says correction will take "50 years or more"

Economist Alejandro Grisanti says the parallel FOREX rate shot up to new record heights due to uncertainty over specific policies to rein in scarcity and inflation, as well as the supply of foreign currency. A recent statement by Rafael Ramírez, Vice President for Economic Affairs, that "it will take 50 years or more to straighten market imbalances" has set alarms off in markets. Grisanti says that Ramirez's terrible communications have created negative expectations. "I don't know who is advising him, but it is clearly not working because the parallel exchange rate has not stopped rising". Another cause for the rise is growth in liquidity, which is currently at VEB 1 billion according to the Central Bank. "There is too much cash circulating due to increased public spending, expenditures for the December 8th elections, and Christmas bonuses being paid to government employees in November", says economist Asdrúbal Oliveros. More in Spanish: (El Nacional; http://www.el-nacional.com/)

VP for Economic Affairs declares "war" on parallel FOREX market

Rafael Ramírez, Minister for Petroleum and Mining, and Vice President for Economic Affairs, has again said FOREX sold via the Foreign Exchange Administration Commission (CADIVI) is feeding the black market, and says, "we have declared the war on the parallel market." "There are large sectors that get US dollars, increase prices, and boost costs, or do not use the dollars. The parallel dollar is not a people's invention. We are trying to detect what sectors can accumulate such an amount of money to create this disturbance, which is intended to destabilize the economy". He claims an alternative FOREX system and FOREX budget are in the works. (El Universal, 10-28-2013; http://www.eluniversal.com/economia/131028/venezuelan-economy-vp-declares-war-on-parallel-forex-market)

Central Bank increases funding for PDVSA and fuels inflation

Prices in Venezuela have skyrocketed over the past two months, amid increasing demand and a higher exchange rate in the unofficial FOREX market. Paradoxically, both the Central Bank of Venezuela (BCV) and state-owned oil company PDVSA play a major role in the imbalance. Excess liquidity is caused by the Central Bank, as it prints banknotes without any backup in order to fund PDVSA and other state-run companies. Official data indicates that from 16 August through 18 October, the Central Bank has printed around VEB 59 billion (U$D 9.3 billion) to help PDVSA and other state-run companies overcome liquidity problems. Currency injected into the economy in 2013 to date stands around VEB 303.6 billion (U$D 48.29 billion). (El Universal, 10-28-2013; http://www.eluniversal.com/economia/131028/central-bank-increases-funding-for-pdvsa-and-fuels-inflation)

The Central Bank (BCV) increased mandatory bank reserves to 19%, up two percentage points. DATANALISIS Director Luis Vicente León says it is a correct yet insufficient move to curb liquidity, a situation which the bank itself has created. (VENECONOMY, 10-25-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=36911&idc=2; Reuters, http://www.reuters.com/article/2013/10/25/us-venezuela-centralbank-idUSBRE99O0ZZ20131025; and more in Spanish: Luis Vicente Leon ‏@luisvicenteleon)

Public sector has been running a fiscal deficit for six years

Official data shows that despite booming oil prices and higher indebtedness, the Venezuelan public sector has been running a financial deficit for six years. According to the annual report by the Ministry of Finance to the US Securities and Exchange Commission (SEC), the public sector, including the central government and state-run oil company Petróleos de Venezuela (PDVSA), closed 2012 with a 15.6% deficit of Gross Domestic Product (GDP). The figure does not include balances of state-owned enterprises, as have been excluded government accounts since 2010. (El Universal, 10-26-2013; http://www.eluniversal.com/economia/131026/venezuelan-public-sector-accrues-six-years-of-fiscal-deficit)

Central Bank shows disregard for price controls has doubled

Each month, the Central Bank monitors prices for controlled food, medicine and personal care products and compares results to official guidelines. By the end of September prices on regulated products were 138.4% above what controls say they should be. The figure also shows that disregard for controls have doubled from September 2012, when it averaged 57.5%. More in Spanish: (El Universal, http://www.eluniversal.com/economia/131029/bcv-registra-que-se-duplico-desacato-al-control-de-precios

The Central Bank has called a new SICAD FOREX auction, that will offer U$D 93 million in PDVSA 2035 bonds to companies involved in importing Christmas seasonal foods and toys. Companies that produce medicine and medical supplies are included among those that qualify. More in Spanish: (AVN; http://www.avn.info.ve/contenido/bcv-convoca-nueva-subasta-del-sicad; Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/bcv-subastara-93-millones-para-empresas-y-7-millon.aspx; El Mundo, http://www.elmundo.com.ve/noticias/economia/banca/-7-millones-oferta-esta-semana-el-sicad-para-las-p.aspx; http://www.elmundo.com.ve/noticias/economia/banca/bcv-convoca-nueva-subasta-del-sicad-por--100-millo.aspx)

Oil & Energy

PDVSA's debt likely to close 2013 at U$D 43 billion

In a report on Venezuelan oil policy, economic research firm ECOANALÍTICA estimates PDVSA's indebtedness could close this year at U$D 43.6 billion, above the U$D 40 billion recorded in 2012. The oil giant's financial debt will be impacted by loans PDVSA has negotiated with other oil companies and the likely sale of additional bonds. ECOANALÍTICA explains that Rafael Ramírez, Minister for Petroleum and Mining and PDVSA President, has taken steps to raise funds in order to boost output in joint ventures, particularly in the western part of the country. In this context, Venezuela is to receive loans of U$D 4 billion from China National Petroleum Corporation (CNPC), U$D 2 billion from CHEVRON, U$D 1.5 billion from Schlumberger, and U$D 500 billion from China Development Bank. (El Universal, 10-28-2013; http://www.eluniversal.com/economia/131028/pdvsas-debt-likely-to-end-at-usd-43-billion-in-2013)

VEB 6.3/U$D exchange is insufficient to meet PDVSA cash flow necessary to meet payroll, suppliers, social projects and investments, according to DATANALISIS Director Luis Vicente León. (More in Spanish: Luis Vicente Leon ‏@luisvicenteleon)

Venezuelan oil falls U$D2.14 a barrel

Venezuela's weekly oil basket continued falling below the country's desired U$D 100 a barrel floor as easing worries over strife in Syria and the Middle East and the US budget shutdown fiasco reduced demand for oil. According to figures released by the Ministry of Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending October 25 was U$D 95.76, down U$D 2.14 from the previous week's U$D 97.90. According to Venezuelan government figures, the average price in 2013 for Venezuela's mix of heavy and medium crude is now U$D 102.20 for the year to date. According to the US Department of Energy, the US imported 728,000 barrels a day from Venezuela in July and averaged about 731,000 barrels a day for the year through July. In 2012, US oil imports from Venezuela averaged 906,000 barrels a day. (Latin American Herald Tribune; http://www.laht.com/article.asp?ArticleId=1123138&CategoryId=10717)

PDVSA tests drones to watch for oil spills

State oil company PDVSA says it is testing unmanned aircraft to monitor energy installations and watch for spills in the country's crude heartland around Lake Maracaibo. A series of oil spills in recent years have put pressure on the government and heightened concerns about the industry's impact on the environment of the nation. The current monitoring system has relied upon human observers riding in costly three-hour helicopter flights every day. (Reuters, 10-25-2013; http://www.reuters.com/article/2013/10/25/venezuela-spills-drones-idUSL1N0IF0Y220131025)

Commodities

Paper scarcity may be overcome

Trade Minister Alejandro Fleming met with Tania Díaz, Vice chairperson of the Media Subcommittee in the National Assembly, representatives of regional media and the printing industry to plan a broad approach to the ongoing paper supply crisis. Opposition legislator Biagio Pilieri says "there is already a commitment by the legislature to the nation's editors to seek a solution to paper scarcity, and it must be honored. We hope it can materialize this week". In many states media have closed or have lowered the number of pages due to a lack of paper. More in Spanish: (El Nacional; http://www.el-nacional.com/)

International Trade

Brazil pressures Venezuela to settle debt over food imports

The Brazilian Government is demanding that Venezuela pay for imports of Brazilian imports, mainly food. In some instances there are 4 month delays in payment for exports by Brazilian companies to Venezuela, according to Folha de Sao Paulo daily newspaper. Brazil has sent its Trade and Industry Minister Fernando Pimentel and Marco Aurelio García, International Affairs Advisor to President Dilma Rouseff to Caracas to discuss the matter of payment while reinforcing their willingness to help overcome the ongoing supply crisis in Venezuela. (El Universal, 10-28-2013; http://www.eluniversal.com/economia/131028/brazil-pressures-venezuela-to-settle-debt-over-food-imports)

Politics

A majority doubts Maduro will deal with major problems

The latest poll by IVAD shows a majority of Venezuelans spontaneously identify crime, scarcities, inflation, unemployment and power outages as the main problems facing them today. The poll show a majority doesn't believe President Nicolás Maduro can solve these problems, and among those who say he can a majority will not grant him more than 12 months to do so. Five out of 10 respondents are convinced the Maduro regime cannot solve the problem of crime. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/131029/mayoria-no-cree-que-maduro-acabe-con-la-inseguridad)

Samán blames private sector for lowered productivity

Eduardo Samán, president of the national consumer protection agency (INDEPABIS) says the "economic warfare" the government must now face is more difficult because the enemy is covert. He says it is a situation "similar to that of 2002, with the difference that this time it is not declared". He says that rather than hire more people, business chose to cut down on working hours and "thus diminish productivity". More in Spanish: (El Universal; http://www.eluniversal.com/economia/131029/saman-responsabiliza-a-los-privados-de-bajar-la-produccion)

Colombia charges guerrilla is taking refuge in Venezuela

Colombian Defense Minister Juan Carlos Pinzón has asked for increased cooperation by Venezuelan authorities at several border areas in order to prevent his nation's FARC guerrillas from committing crimes in Colombia and hiding in Venezuelan territory. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/131029/colombia-reclamo-que-la-guerrilla-se-refugia-en-venezuela)

Russian strategic bombers fly to Venezuela as part of military exercise

Two Russian strategic bombers have flown to Venezuela as part of a military exercise. Russia's Defense Ministry said that the two Tu-160 supersonic long-range bombers took off from Engels air base near the Volga River city of Saratov in the country's southwest. The bombers, which are capable of carrying nuclear-tipped cruise missiles, landed at Maiquetia airport near Caracas. (Fox News, 10-28-2013; http://www.foxnews.com/world/2013/10/28/russian-strategic-bombers-fly-to-venezuela-as-part-military-exercise/)

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.

March 29, 2013

Economics & Finance

BARCLAYS: Undisclosed SICAD exchange rate indicates strong devaluation

Venezuela's Planning and Finance Ministry reports that the first FOREX auction through the Ancillary Foreign Currency Administration System (SICAD) was U$D 200 million allocated to 383 corporate bidders, at an unknown exchange rate, which has led BARCLAYS Capital to suggest there has been a strong devaluation of the local currency, for the second time in 47 days. Official reports have not revealed criteria for selecting beneficiaries, nor have they disclosed whether allocations went to public and private companies alike. (El Universal, 03-28-2013; http://www.eluniversal.com/economia/130328/barclays-capital-blinding-sicad-exchange-rate-hints-strong-devaluation; http://www.eluniversal.com/economia/130327/novel-auction-awards-usd-200-million-to-383-companies; Bloomberg, http://www.bloomberg.com/news/2013-03-27/venezuela-sells-200-mln-in-auction-without-revealing-fx-rate.html; Reuters, http://www.reuters.com/article/2013/03/27/venezuela-economy-idUSL2N0CJ1JQ20130327)

Fitch Affirms Venezuela’s IDRs at ‘B+’

Fitch Ratings has affirmed Venezuela’s ratings as follows: Long-term foreign currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) at ‘B+’; Short-term FC IDR at ‘B’; Country Ceiling at ‘B+’. The Rating Outlook is Negative. (Latin American Herald Tribune, 03-26-2013; http://www.laht.com/article.asp?ArticleId=726983&CategoryId=10717; Reuters, http://www.reuters.com/article/2013/03/27/fitch-affirms-venezuelas-idrs-at-b-outlo-idUSFit65300020130327)

PDVSA cuts funding to welfare programs

Based on the 2012 report compiled by state-owned oil company PDVSA, the oil giant allocated fewer funds to welfare programs commonly known as missions. The Great Housing program was the only exception. According to the annual report, resources for social, agriculture and community programs fell by 22%, from U$D 15.3 billion in 2011 to U$D 11.9 billion in 2012. Resources to community programs were cut 71%, from U$D 585 million in 2011 to U$D 170 million in 2012. (El Universal, 03-28-2013; http://www.eluniversal.com/economia/130327/venezuelan-state-oil-company-pdvsa-cuts-down-funds-to-welfare-programs)

Food manufacturers, distributors may see protests over shortages

Food manufacturers and distributors may see a wave of labor union protests in the coming days, and possible temporary closures ordered by the government, as shortages of staple foods become increasingly acute. Scarcity of basic foods has now climbed to its highest level since May 2008, according to Venezuela's central bank, which monthly calculates a scarcity index based on the availability of 17 different items in a range of shops. The Central Bolivariana Socialista de Trabajadores, CBST, which groups some 1,500 labor unions and which is politically affiliated to the government of interim President Nicolas Maduro, accuses supermarket chains of hoarding foods and speculating with prices; most economists attribute shortages to government-imposed price and exchange controls. Earlier this week members of the CBST demonstrated in various cities around the country, with the main protest target being Empresas POLAR, the country's largest privately-owned industrial conglomerate, although its operations in Caracas and Barquisimeto were not affected. The CBST plans to extend its protests to 12 of the country's 23 states. Another potential target in the foods sector is CARGILL. Although the protests are unlikely to immediately cause major disruptions to operations, they could prompt government institutions such as the tax collection agency, SENIAT, and the consumer protection agency, INDEPABIS, to carry out more spot inspections of businesses, leading to temporary closures and fines. In February INDEPABIS shut down at least five nationwide department stores chains. (LATIN-IG: http://www.latin-iq.com/)

International Trade

Uruguay has requested to join the regional SUCRE currency, a move that will bring it into greater cooperation with the leftist ALBA, despite the fact it is not a member of the alliance yet. The regional currency system, the Unitary System of Regional Compensation (SUCRE) is used by Bolivia, Cuba, Ecuador, Nicaragua and Venezuela. (Veneconomy, 03-26-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=34169&idc=2)

Politics

Political expert says Maduro is weakened

"The main challenge for Henrique Capriles Radonski is to make people realize that should they act as in the last presidential election of October 7, 2012. In the event of a turnout of seven million people for the opposition, winning the election of April 14 is plausible," according to Ángel Oropeza, a political expert and professor at Central University of Venezuela (UCV). He adds that pro-government voting has been be lower whenever deceased President Hugo Chávez was not running.  "History is against Chávezism; a part of the pro-government vote is tied to Chávez's figure," he says. (El Universal, 03-28-2013; http://www.eluniversal.com/nacional-y-politica/130328/venezuelan-political-expert-maduro-is-weakened)

Election in Venezuela escalates with disqualifications on both sides

Everything counts in Venezuelan electioneering heading for the Presidential election on April 14, first to be held in the absence of deceased President Hugo Chávez, which is a face-off between acting President Nicolás Maduro and opposition leader Henrique Capriles Radonski. (El Universal, 03-28-2013; http://www.eluniversal.com/nacional-y-politica/130328/electioneering-in-venezuela-escalates-with-disqualification-from-both-)

US former official: Washington warned Chávez about assassination in 2002

In an article published on Americas Forum, Otto Reich, former Assistant Secretary of state for Western Hemisphere Affairs, stays the US alerted late Venezuelan President Hugo Chávez of an alleged plot back in 2002. Following accusations of acting President Nicolás Maduro, Reich denied Washington's involvement in the death of the Venezuelan leader, who died from cancer on March 5. "Despite the hostility that characterized the US relationship with Chávez, it is not only false to accuse the United States of killing Chávez, but the truth is that we likely prevented his assassination on more than one occasion," Reich remarked. (El Universal, 03-27-2013; http://www.eluniversal.com/nacional-y-politica/130327/us-former-official-washington-warned-chavez-about-assassination-in-200)

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.

January 10th, 2012

Economics & Finance

Chavez vows to reject arbitration in EXXON case

President Hugo Chavez says that Venezuela would not recognize a ruling by a World Bank panel in a multibillion-dollar arbitration case with the EXXON MOBIL Corporation. “I tell you now, we will not recognize any decision” by the center, Mr. Chavez said during a televised speech. “They are trying the impossible: to get us to pay them,” he said. “We are not going to pay them anything.” It was not immediately clear whether Mr. Chavez was also referring to about 20 other cases that Venezuela faces before the World Bank’s arbitration panel that were prompted by a wave of state takeovers in recent years. They include separate multibillion-dollar proceedings brought by ConocoPhillips, another major American oil company. (The New York Times, 01-09-2012; http://www.nytimes.com/2012/01/09/business/venezuela-will-not-recognize-world-bank-ruling-in-exxon-case.html?_r=2)

Leaving ICSID to hit foreign investment

Arbitration specialist Luis Alfredo Araque predicts Venezuela’s withdrawal from the World Bank’s International Center for Settlement of Investment Disputes (ICSID) will scare away foreign investment. “No one in their right mind will invest in a country that is not in ICSID”, says Araque, who considers the President’s threat a “very serious” matter which – if made effective – could be highly damaging to the nation. More in Spanish: (El Universal, 01-10-2012; http://www.eluniversal.com/economia/120110/salida-del-ciadi-alejara-inversion-extranjera)

2012 inflation projected around 30%

Although the Government expects economic growth above 5% this year, analysts – such as IESA economis Hugo Faría – predict the country will suffer high inflation and indebtedness this year as a result of increased spending in support of President Chavez’s campaign for reelection. More in Spanish: (Tal Cual, 01-10-2012; http://www.talcualdigital.com/index.html)

Public Stock Exchange readies for new Petro-Bond

According to the President of the Bicentennial Public Stock Exchange, Felix Franco, they are getting ready for a new issue of Petro-Bonds to take place during the first five months of this year. He said during an interview “We expect the issue of Petro Bonds announced by President Chavez will be placed through the Public Stock Exchange in the secondary market”. More in Spanish: (AVN, 01-10-2012; http://www.avn.info.ve/contenido/bolsa-pública-valores-se-prepara-para-emisión-petrobono; El Universal, http://www.eluniversal.com/economia/120110/bolsa-publica-bicentenaria-prepara-plataforma-de-petrobonos)

Commodities

Venezuela's oil opens the year at U$D 108.27

The price of the Venezuelan oil basket started 2012 with a U$D 1.57 per barrel increase, to an average U$D 108.27, according to the Ministry of Petroleum and Mining. Last week, Venezuelan oil basket closed at U$D 106.70 for an average skyrocketing price of U$D 101.04 per barrel in 2011. (El Universal, 01-06-2012; http://www.eluniversal.com/economia/120106/venezuelas-oil-begins-the-year-at-usd-10827)

Petropiar drilled 157.200 bpd in 2011

PETROPIAR, the joint venture led by state-run oil holding Petróleos de Venezuela (PDVSA) which operates at the Orinoco Oil Belt, had an average output of 157,200 barrels per day (bpd) during, which surpassed the initial goal set by the National Budget Office (Onapre) of 155,300 bpd on a yearly average. (El Universal, 01-06-2012; http://www.eluniversal.com/economia/120106/petropiar-drills-157200-bpd-in-2011)

Chavez says the Orinoco Oil Belt project will bolster economic development

President Chavez says that the Orinoco Socialist Plan, to be developed along the Orinoco Oil Belt, will be the main tool for the economic development of the country and for the a newly launched program aimed at promoting productive employment in the country. According to governmental estimations bout 300,000 job posts will be created in the entire area in the next years. The Orinoco Oil Belt is the world's largest liquid hydrocarbon reserves and it covers 4 states in Venezuela (Delta Amacuro, Guárico, Anzoátegui and Monagas). (AVN, 01-08-2012; http://www.avn.info.ve/contenido/project-orinoco-oil-belt-bolster-economic-development)

Government predicts it will raise iron production to 20 million tons in 2012…

President Chavez claimed on national television that the Government expects to increase iron production to about 20 million tons during 2012. (AVN, 01-09-2012; http://www.avn.info.ve/node/94376)

and says it will increase cement production capacity by 27% in 2013

Industry Vice Minister Raul Pacheco announced that through official investments in the cement production, capacity is expected to increase by 27% by 2013; that is about 11.54 million tons a year. Pacheco made the statement from the Cerro Azul cement plant that is under construction in cooperation with Iran. (AVN, 01-09-2012; http://www.avn.info.ve/contenido/venezuela-increase-cement-production-capacity-27-2013)

Indepabis has published an updated list of price controlled items

The Institute for the Defense of People’s Access to Goods and Services (INDEPABIS) has updated a list of over 100 items in the basic foods category on its web page: http://www.indepabis.gob.ve/. Key items are vegetable oil, sugar, coffee, poultry, beef, milk, cheese, rice, sorghum, corn, precooked corn flour, pasta, and canned foods. More in Spanish: (AVN, 01-10-2012; http://www.avn.info.ve/contenido/indepabis-publica-listado-actualizado-rubros-alimenticios-regulados)

International Trade

Venezuela, Peru in pacts on oil investments, trade

The presidents of Venezuela and Peru have reached an agreement for the Peruvian state oil company to invest in development of Venezuela's eastern Orinoco oil belt. PDVSA will study a possible role in developing a petrochemical complex in Peru as well as helping Peru increase its production of heavy and extra heavy crude oil. The formal agreement came during a Saturday meeting between President Hugo Chavez and Peruvian leader Ollanta Humala, while representatives of the two governments signed agreements establishing mechanisms for transportation, storage, refining and marketing of hydrocarbons. Other pacts cover the sale in Peru of tractors and other farm implements made in Venezuela. The main Peruvian private sector organization, CONFIEP, has criticized the agreements, saying they are of no advantage to Peru. Venezuela’s imports from Peru rose 422,6% over the past 13 years, from U$D 88.4 million to U$D 462.1 million last year; but exports dropped 73,78%, from U$D 143.4 million in 1999 to U$D 37.5 million in 2011.  (AJC, 01-07-2012; http://www.ajc.com/business/venezuela-peru-in-pacts-1294147.html and more in Spanish: El Nacional, 01-09-2012; http://www.el-nacional.com/)

Venezuela to strengthen cooperation with Nicaragua

Venezuela’s ambassador to Nicaragua, María Alejandra Ávila, announced that cooperation agreements with that country will increase after the reelection of Daniel Ortega for a second term in office. The two countries are already undertaking several projects, all of which are covered by the PETROCARIBE energy agreement. PDVSA América maintains ALBANILISA operations in Nicaragua in order to purchase such items as beef, beans, rice and coffee for distribution in Venezuela through official outlets. More in Spanish: (El Nacional, 01-09-2012; http://www.el-nacional.com/ and AVN; http://www.avn.info.ve/contenido/venezuela-strengthen-cooperation-agreements-nicaragua)

Logistics & Transport

Patrol vessels to be built in Puerto Cabello by Cuban technicians

It is projected that during the first quarter of this year manufacturing of patrol vessels by Cuban technicians will begin at the Puerto Cabello Naval Base, based on a January 5^th agreement signed by the Defense Ministry and Cuba's Ministry for Transportation. More in Spanish: (El Nacional, 01-09-2012; http://www.el-nacional.com/)

Politics

Chavez defends Ahmadinejad against 'US warmongering'…

President Hugo Chavez defended his close ally Iranian leader Mahmoud Ahmadinejad and said:  "They accuse us of being warmongers," Chavez said. "They're the threat." He also accused the U.S. and its European allies of demonizing Iran and using false claims about the nuclear issue "like they used the excuse of weapons of mass destruction to do what they did in Iraq." Both leaders planned to travel to Nicaragua on Tuesday for the inauguration of newly re-elected President Daniel Ortega, and then Ahmadinejad will also visit Cuba and Ecuador. Laughing, Chavez said Ahmadinejad is traveling through "the axis of evil of Latin America." (AP, 01-09-2012; http://www.google.com/hostednews/ap/article/ALeqM5g_8vPleqBjcvHFI5K3wlevor-SPA?docId=386da2827cbe43c38cbe5b31004d0a18)

…But makes no oil deals with Iran

On the other hand, Oil Minister Rafael Ramirez told reporters the government had not made any oil-related agreements with Iran. On the issue of sanctions against Iran and its threats to block the Strait of Hormuz, Ramirez said OPEC, to which both countries belong, could not get involved in the issue. "Any action that Iran takes in defense of its sovereignty is a matter of Iran," Ramirez said. (AP, 01-09-2012; http://www.google.com/hostednews/ap/article/ALeqM5g_8vPleqBjcvHFI5K3wlevor-SPA?docId=386da2827cbe43c38cbe5b31004d0a18)

Venezuelan consul in Miami ordered to leave U.S. for discussing cyber-attacks

In a move likely to further strain relations between the United States and Venezuela, the State Department on Sunday said that it had ordered Livia Acosta Noguera, Venezuela’s consul general in Miami, to leave the country. The decision to expel Acosta was made one month after Spanish-language Univision Network broadcast a documentary about Iran’s alleged terrorist activities in Latin America, including a taped segment in which the consul reportedly asks an alleged Mexican hacker to give her access codes to nuclear facilities in the United States. President Hugo Chavez called the decision a show of “arrogance by the ridiculous empire”; and Foreign Minister Nicolás Maduro said they would give the US a “clear and firm” response. (Miami Herald, 01-08-2012; http://www.miamiherald.com/2012/01/08/2579965/venezuelan-consul-in-miami-ordered.html and more in Spanish: Noticiero Venevisión, http://www.noticierovenevision.net/politica/2012/enero/9/12582=chavez-asevera-que-expulsion-de-consul-venezolana-es-%E2%80%9Cuna-demostracion-mas-de-la-prepotencia-del-imperio-ridiculo%E2%80%9D and Tal Cual; http://www.talcualdigital.com/index.html)

President Chavez to attend Nicaragua's Ortega inauguration

President Chavez announced Sunday that he will travel next Tuesday Jan. 10 to Managua, Nicaragua, to attend the inauguration of his counterpart Daniel Ortega. (AVN, 01-09-2012; http://www.avn.info.ve/contenido/president-chavez-attend-nicaragua039s-ortega-inauguration)

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.