Oil & Energy
Venezuela says it beat Phillips 66 suit at ICSID
State
oil company PDVSA says it has won in a US$ 244.3 million lawsuit brought by
Phillips 66 at the World Bank ICSID arbitration center, over PDVSA’s failure to
supply crude oil to the Phillips Sweeny refinery in Texas under a 1999
contract. Phillips 66 is a subsidiary of ConocoPhillips. More in Spanish: (El
Nacional, http://www.el-nacional.com/economia/Venezuela-demanda-filial-estadounidense-ConocoPhillips_0_913108856.html)
Commodities
Food production down 24.6%
The
Venezuelan National Food Industry Chamber (CAVIDEA) reports that local food
production has contracted 24.6% year to date compared to 2015, particularly in
oatmeal, ketchup, margarine and powdered milk. Production continues to drop
leading to more scarcity and further inflation. More in Spanish: (El Universal,
http://www.eluniversal.com/noticias/economia/cavidea-cae-246-produccion-alimentos_468307)
Economy & Finance
FOREX supply to the private sector shrank 66.5% during
the first semester this year.
According
to the ECOANALÍTICA think tank, FOREX officially allocated by the government to
the private sector here dropped by 66.5% January-July this year, as compared to
the same time period in 2015. FOREX allocations this year were an average US$
16.8 million daily, compared to US$ 50.1 million daily last year, and an
average US$ 129.5 million daily in 2014. More in Spanish: (El Nacional, http://www.el-nacional.com/economia/Gobierno-liquido-divisas-enero-julio_0_913109008.html)
FEDECAMARAS reports over 7,000 companies closed here
in a decade
Francisco
Martínez, head of the Federation of Chambers of Commerce (FEDECÁMARAS) reports that
7,000 out of 12,000 companies in Venezuela have been shut down over the past
decade. Martínez says this situation can worsen with a recent compulsory minimum
wage raise announced by the Maduro regime. “There
are many companies that today could pay (their employees), yet within two or
three months, which is more or less the range of the salary raise, many
enterprises will fall by the wayside”, he added. (El Universal, http://www.eluniversal.com/noticias/daily-news/fedecamaras-over-7000-companies-closed-decade-venezuela_477571)
Minister claims poverty in Venezuela was down to 18.3%
during first half of 2016
Planning
Minister Ricardo Menéndez claimed that overall poverty in Venezuela was 18.3% during
the first half of 2016, a 1.3% drop from the previous semester in 2015, when he
said it hit 19.6%. (El Universal, http://www.eluniversal.com/noticias/daily-news/minister-poverty-venezuela-down-183-during-first-half-2016_468250)
Politics and International Affairs
Venezuelan opposition floods Caracas in vast
anti-Maduro protest
Dressed
in white and chanting "this government will fall," hundreds of
thousands of opposition supporters flooded Venezuela's capital on Thursday to
press for an end to President Nicolas Maduro's rule. Led by two-time presidential
candidate Henrique Capriles, in probably the biggest mass demonstration against
the ruling socialists in more than a decade, protesters streamed into Caracas
from the Amazon jungle to the western Andes. The opposition Democratic Unity
coalition estimated at least 1 million people took part in the rallies to
demand a recall referendum against Maduro and decry the deep economic crisis. The
opposition hoped the protests would prove they are the majority and heap
pressure on Maduro and the national election board to allow a plebiscite on his
rule as allowed by the constitution half-way through a presidential term. But
with the election board dragging its feet over the process and the government
swearing the referendum will not happen this year, the opposition has no way to
force it no matter how many people it brings onto the streets. The timing is all-important because should
there be a plebiscite in 2017 and Maduro loses, his handpicked vice president
would take over for the ruling Socialist Party, rather than triggering a new
presidential election. Maduro claimed the opposition-dubbed "Takeover of Caracas" today was a
front for coup plans, akin to a short-lived 2002 putsch against his mentor
Chavez, who died of cancer three years ago. Maduro has failed to replicate his
charismatic predecessor's popular appeal, and his ratings in opinion polls have
halved to just over 20%. "I'm ready
for everything ... we will not allow a coup," Maduro told supporters
late on Wednesday. Lieutenant Diosdado Cabello, Vice President of the PSUV pro
government party, said government supporters would prevent anyone from entering
or leaving Caracas and threatened the opposition saying “do not provoke us”. Swearing
loyalty to Chavez's legacy and calling opposition leaders a wealthy elite
intent on controlling Venezuela's oil, thousands of red-shirted government
supporters gathered for counter-rallies. Maduro joined his supporters in the
afternoon, singing on stage and pumping his fist in the air. (Reuters: http://www.reuters.com/article/us-venezuela-politics-idUSKCN1173LS;
Bloomberg, http://www.bloomberg.com/news/articles/2016-08-31/venezuelan-opposition-s-anti-maduro-march-banks-on-big-turnout;
and more in Spanish: El Universal, http://www.eluniversal.com/noticias/politica/chavismo-oposicion-concentraran-hoy-caracas_47761; http://www.eluniversal.com/noticias/politica/chavismo-mantiene-calle-defensa-paz_477640; http://www.eluniversal.com/noticias/politica/personas-todo-pais-asisten-toma-caracas_477639; El
Nacional, http://www.el-nacional.com/politica/Cabello-Trancaremos-Caracas-entra-nadie_0_913108999.html)
Maduro ratchets up repression ahead of opposition
march
Embattled
President Nicolas Maduro prepared for the nationwide opposition demonstration today
by arresting opposition leaders, blocking accesses to Caracas and grounding all
private aircraft (including drones) for nine days. Interior Minister Major
General Nestor Reverol -- who was indicted by the U.S. for drug trafficking
earlier this month -- said during a televised press conference that “we are taking every action so that peace
reigns in the country.” Venezuela's beleaguered opposition sees the
government efforts differently. Maduro announced that his regime has arrested
several opposition activists accused of plotting violence during the
anti-government rally, and opposition leaders slammed the arrests as
intimidation. Yon Goicoechea, a former student leader who helped the opposition
mount one of the most significant challenges to the late Hugo Chavez, was
arrested on charges of possessing detonating cords for explosive
devices, the ruling socialist party said Monday. Freddy Guevara, a
leader of the opposition Popular Will party, said the charges against
Goicoechea were baseless. Goicoechea, who helped organize a wave of protests in
2007, returned to Venezuela in July after completing graduate studies in the
U.S. and Spain. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2419739&CategoryId=10717;
El Universal, http://www.eluniversal.com/noticias/daily-news/minister-reverol-security-rules-should-observed-rally-sept_468261;
Reuters, http://www.reuters.com/article/us-venezuela-politics-idUSKCN1152TG;
Bloomberg, http://www.bloomberg.com/news/articles/2016-08-30/venezuela-arrests-activist-ahead-of-national-opposition-protest)
Maduro threatens to abolish legislative immunity
President
Nicolas Maduro has threatened to ask the nation’s Supreme Tribunal to authorize
taking away immunity that protects Venezuela’s legislators “if it were necessary”. He also accused
National Assembly President Henry Ramos Allup of inciting political violence
here, and said he was consulting experts whether to try him. “I have asked the State Attorney to prepare a
decree under the economic emergency and state of siege powers, to consult with
the Supreme Tribunal about taking away immunity from all public offices,
starting with parliamentary immunity in Venezuela, if necessary.” More in
Spanish: Reuters: http://lta.reuters.com/article/domesticNews/idLTAKCN11739W)
Foreign correspondents detained and expelled from
Venezuela in advance of protest rally
Jim
Wyss, Miami Herald Andean bureau chief, was detained last night in Venezuela
where he had gone to report on today’s massive protest rally. Wyss was detained by Venezuelan immigration
authorities as he entered the country with a journalist visa valid through
October. After not hearing from him for four hours, his editor received an
email from him Wednesday night saying he was well and being put on a plane to
Panama. He said he had been detained because he wasn’t registered to be a
journalist in Venezuela. He said he had filed all the required paperwork, but
he was being expelled from the country. Two journalists from Al Jazeera and
other news organizations had been turned away when they tried to enter the country.
The Committee to Protect Journalists said Wednesday that Venezuela has denied
entry to at least six journalists who wanted to cover today´s protest to demand
a recall referendum on President Nicolas Maduro. The CPJ has called for the
Venezuelan government to allow foreign journalists to freely work in the
country. CPJ said that among the journalists who were denied entry were its own
Andes correspondent, John Otis, and reporters from Le Monde, Caracol Radio in
Colombia, Caracol TV and the two journalists from Al Jazeera. (The Miami
Herald: http://www.miamiherald.com/news/nation-world/world/americas/venezuela/article99168072.html#storylink=cpy)
OAS warned Venezuelan government against violence
during rally on Sept 1
The Organization
of American States General Secretariat (OAS) denounced what it terms the “worsening of repression and human rights
violations” here ahead of the rally convened by the Democratic Unity (MUD)
opposition coalition today. The regional organization warned that any abuse on
the part of the government would be “unacceptable.”
In a communiqué, the OAS General Secretariat, led by Uruguayan diplomat Luis
Almagro, voiced concern over events taking place days before a rally, and
warned that the Maduro regime would be responsible for casualties today. (El Universal, http://www.eluniversal.com/noticias/daily-news/oas-warns-venezuelan-govt-against-violence-during-rally-sept_477580)
UNASUR and former presidents called for peaceful
demonstration today
Ernesto
Samper, Secretary General of the Union of South American Nations (UNASUR), along
with former Presidents José Luis Rodríguez Zapatero of Spain, Leonel Fernandez
of the Dominican Republic, and Martín Torrijos of Panama, called for a peaceful
demonstration today. In a communiqué, they made “a strong call so that the different political and social actors are
allowed to exercise peacefully their right to demonstrate during rallies
convened.” (El
Universal, http://www.eluniversal.com/noticias/daily-news/unasur-ex-presidents-advocate-peaceful-demonstration-sept_477593)
Rodríguez Zapatero in Venezuela
Spain’s
former President José Luis Rodríguez Zapatero visited here two days ahead of the
rally called by the country’s opposition political forces to put pressure on
the government to accept a recall vote against the mandate of President Nicolas
Maduro. Jesús Torrealba, Secretary General of the Democratic Unity opposition
coalition, says the visit may be due to concerns on the part of the
international community over today’s march in Caracas. (El Universal, http://www.eluniversal.com/noticias/daily-news/rodriguez-zapatero-venezuela_477544)
National Labor Federation (CTV) charges regime is
trying to fire 19,000 government workers
Venezuela’s
Labor Federation has charged that the regime is trying to fire 19,000 public
servants because of their support for the recall referendum against President
Nicolas Maduro. Elias Torres, a member of the CTV board, says the government
has lists of government employees culled from voter signature lists turned over
by the National Elections Council (CNE) to the pro-regime PSUV party. More in
Spanish: (El Nacional, http://www.el-nacional.com/economia/CTV-oficialismo-pretende-despedir-empleados_0_912508996.html)
Venezuela withdraws its ambassador and freezes
relations with Brazil due to Rousseff removal
Venezuela's
leftist government said it was removing its ambassador from Brazil and freezing
relations with the neighboring country after the removal of President Dilma
Rousseff, which it condemned as a "coup."
Brazil called its own representative in Caracas back for consultation and
demanded respect from “bolivarian”
countries that have questioned the political transition there. Bolivia, Ecuador and Cuba also called the
impeachment of Rousseff a “parliamentary
coup d’etat”. (Reuters, http://www.reuters.com/article/us-brazil-impeachment-venezuela-idUSKCN1162Q2,
and more in Spanish: El Universal, http://www.eluniversal.com/noticias/internacional/venezuela-retira-embajador-brasil-respaldo-rousseff_477589; http://www.eluniversal.com/noticias/internacional/brasil-llama-consultas-embajador-caracas-pide-respeto_477642; El
Mundo, http://www.elmundo.com.ve/noticias/actualidad/internacional/venezuela-retira-embajador--y-congela-relaciones-c.aspx)
Ultra-violent gangs thrive in chaotic Venezuela
despite crackdown
Venezuela's
socialist economy is suffering triple-digit inflation, severe shortages and a
third year of recession, but gangs like this have found strength and profit in
the chaos. They are teaming up with former rivals and buying heavier weapons to
control ever-larger territory in the capital and beyond, the criminals, the
government and criminologists say. "The
majority of the other slums are our friends. It's not only us anymore, now we
do business with each other," said the leader, sat at a desk with his
face hidden by a black ski mask. He said rampant inflation is forcing the gang
to be even more active as it seeks to cover sky-rocketing costs for weapons,
drugs and even food. (Reuters, http://www.reuters.com/article/us-venezuela-gangs-idUSKCN1162AJ)
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.
