November 30th, 2012

Economics & Finance

Bank of America anticipates an improved scenario for Venezuelan bonds

The increasing chances for devaluation and spending cuts have led Bank of America improve its view of the financial standing of the Venezuelan government.  The bank believes spending cuts and funds derived from devaluation will broaden Venezuela's ability to repay principal amount and interest of bonds issued by the Republic and state-run oil holding Petróleos de Venezuela (PDVSA). According to Bank of America, Venezuela's public spending has lowered by 13% over the six weeks following the presidential election, which - together with potential exchange rate adjustment - could reduce the central government fiscal deficit from 8.8% of GDP in 2012 to 2.2% next year. (El Universal, 11-29-2012; http://www.eluniversal.com/economia/121129/bank-of-america-anticipates-a-better-scenario-for-venezuelan-bonds; Bloomberg, 11-28-2012; http://www.bloomberg.com/news/2012-11-28/venezuela-bonds-raised-to-a-buy-at-bofa-as-chavez-seeks-care-1-.html)

Excess liquidity clogs financial system

The government has injected so much liquidity into the economy that financial institutions are having problems accommodating the surplus. One financial institution executive says: "We are telling companies that have fixed term deposits that become due that we will renew them at zero interest rates, and many accept as they know they will not find anything different at other banks." During October banks held a monthly average VEB 34 billion above reserves required by the Central Banks, and at the close of November the amount jumped by 82% to VEB 62 billion. More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/economia/121130/se-dispara-el-exceso-de-bolivares-en-el-sistema-financiero)

Stricter price controls in place

The National Superintendent for Costs and Prices (SUNDECOP) has now extended its control basic food, to personal care and cleaning products, fruit juices, compotes, and water, which indicated that price controls are hardening rather than becoming more flexible. More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/economia/121130/gobierno-extiende-el-control-a-la-cadena-de-comercializacion)

Prices raised on coffee, rice and corn flour

New maximum authorized sale prices for precooked corn flour, white rice and ground coffee have been published, according to a joint resolution by the Ministries for Planning and Finance, Agriculture and Lands, Food and Industries. The new price for precooked corn flour per kilogram was set at VEB 5.59 for industry, 5.76 for wholesalers and 5.93 for retailers. The new price of white rice per kilogram was fixed at VEB 6.79 for industry, 6.99 for wholesalers and 7.20 for retailers. As for ground coffee, for industry the kilo will cost VEB 42.74, Bs. 44.02 for wholesalers; and Bs. 46.66 for retailers. (AVN, 11-28-2012; http://www.avn.info.ve/contenido/new-prices-coffee-rice-and-corn-flour; Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=32993&idc=3; El Universal, http://www.eluniversal.com/economia/121128/rise-in-price-of-regulated-foodstuffs-published-in-official-gazette; Bloomberg, http://www.bloomberg.com/news/2012-11-27/venezuela-raises-prices-on-corn-flour-rice-coffee-loyo-says.html)

Commodities

PDVSA analyzing valuation and compensation for oil service companies expropriated in Zulia State

Three years after oil industry service companies were expropriated on the East Bank of Lake Maracaibo, PDVSA has announced it is negotiating valuations and repayment of 45 out of 141 expropriated in the region. Alfredo Hernández-Raffalli, President of the nation's Petroleum Chamber, considers it a "very important step for PDVSA to acknowledge the obligation to pay indemnities for assets expropriated", and says the process is advancing considerably. Eulogio del Pino, PDVSA Vice President for Exploration and Production, and Ricardo Coronado, Executive Director of its Western Division, told a group of over 30 company owners that repayment would take place before May 2013, but did not say whether repayment will be in cash or in bonds, as has been suggested in the past. Del Pino said "PDVSA acknowledges the investments they made and this is why we will do this transparently, through direct negotiations". Expropriated companies hope to that assets valued in foreign currency are paid for in foreign currency. More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/economia/121130/aspiran-a-que-pdvsa-pague-en-divisas-parte-de-las-expropiaciones)

Logistics & Transport

Business leaders call for expedited dispatches

CONSECOMERCIO's Customs Committee Chairperson, Cipriana Ramos, has charged that massive processing of merchandise has not worked, that the Port Authority (BOLIPUERTOS) has admitted to congestion, and is calling for direct dispatches from the docks. She asked the Port Authority to apply SIDUNEA customs processing procedures which call for electronic inspection and avoids sending merchandise to the yards. Ramos reports that BOLIPUERTOS has been using the discretionary "green light" system selectively, and should be available to all. More in Spanish: (Ultimas Noticias, 11-30-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/consecomercio-le-busca-la-vuelta-al-rollo-de-los-p.aspx  and El Nacional; http://www.el-nacional.com/)

Politics

Chávez undergoing treatment in Cuba for the 11th time in 17 months

President Hugo Chávez missed attending Military Aviation Day ceremonies on the anniversary of the coup d'état that took place on November 27, 1992. More than one year after the Venezuelan president was diagnosed with cancer and for the 11th time since June 2011, again travelled to Cuba to undergo treatment. This time, he will be receiving a "special treatment:" hyperbaric oxygen therapy. Chávez was last seen in public on November 15 during a meeting with his cabinet. Twelve days later, he made the news as National Assembly's President Diosdado Cabello read out a statement issued by Chávez asking permission to leave the country to undergo the previously mentioned therapy. (El Universal, 11-28-2012; http://www.eluniversal.com/nacional-y-politica/121128/chavez-to-undergo-treatment-in-cuba-for-the-11th-time-in-17-months; http://www.eluniversal.com/nacional-y-politica/121127/president-chavez-to-undergo-in-cuba-hyperbaric-oxygen-therapy; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=651406&CategoryId=10718; Reuters, http://www.reuters.com/article/2012/11/29/venezuela-chavez-cuba-idUSL1E8MS27B20121129; http://www.reuters.com/article/2012/11/29/venezuela-chavez-idUSL1E8MT8ZS20121129; The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelas-chavez-returns-to-cuba-for-more-medical-treatment-this-time-in-hyperbaric-chamber/2012/11/28/b2012446-396a-11e2-9258-ac7c78d5c680_story.html; CNN, http://edition.cnn.com/2012/11/28/world/americas/venezuela-chavez-cuba/index.html?iref=allsearch)

Chávez misses second summit meeting in two weeks

President Hugo Chavez is not attending a South American Nations Union (UNASUR) meeting currently underway in Perú, the second such summit he has not attended in two weeks. His absences could rise to 3 if he cannot attend a MERCOSUR Heads of State meeting scheduled to be held in Brasilia on December 7th. More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/nacional-y-politica/121130/chavez-se-pierde-su-segunda-cumbre-en-dos-semanas)

Maduro claims Chavez "is well"

Nicolas Maduro, Venezuela's Executive Vice President and Foreign Minister said yesterday that President Hugo Chávez "is well, very well, and will return much better". The Vice President said "Chavez won the October 7th elections and will continue to be President for the remainder of this decade and beyond." More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/nacional-y-politica/121130/maduro-asegura-que-el-mandatario-esta-bien)

New Presidential succession legislation proposed

With President Chavez again in Cuba for special cancer treatment, the debate has begun anew over who would succeed him if he becomes unable to serve the entire term of office he was reelected to, or if he is unable to reach his new term which begins on January 10th. Given differing opinions on who should succeed if he dies or becomes unable to serve, Luis Herrera, a professor of Constitutional Law at the Catholic University, proposes the enactment of a new law to clear away all doubts. More in Spanish: (El Universal, 11-30-2012; http://www.eluniversal.com/nacional-y-politica/121130/proponen-despejar-dudas-sobre-sucesion-presidencial-en-una-ley)

Opposition governor in Venezuela charges his supporters were attacked during campaign event

Henri Falcon, opposition governor of Lara state in central Venezuela says he and his followers were attacked with guns, tear gas and stones during a political event, presumably by rival ruling party supporters. Falcon, who is running for re-election in Lara, said six people were injured in the violence, though he didn't describe the injuries or their severity. The alleged attack took place during a campaign swing in northeast Barquisimeto, capital of Lara state. (Fox News, 11-27-2012; http://www.foxnews.com/world/2012/11/27/opposition-governor-in-venezuela-says-his-supporters-attacked-during-campaign/#ixzz2DdrJDpV8)

Venezuela is calling for full UN Membership for Palestine

Venezuela's Ambassador to the UN, Jorge Valero, has called for Palestine's full membership in the United Nations and accused Israel of "state terrorism" against the Palestinian people. More in Spanish: (AVN, 11-30-2012; http://www.avn.info.ve/contenido/valero-venezuela-siempre-ha-condenado-agresiones-israel%C3%ADes-contra-pueblo-palestino)

First Venezuelan Mayor in Florida

Luigi Bora, a Venezuelan businessman, was sworn in as Mayor of Doral, in South Florida. (Veneconomy, 11-28-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=33009&idc=1)



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.

October 25th, 2011

Economics & Finance

Morgan Stanley sees Venezuela as LatAm's weakest link

In its latest report, Morgan Stanley claims that Latin America is more prepared than ever to deal with the worsening global crisis, but it labels Venezuela as the region's most vulnerable country. Though Venezuela benefits from solid current-account surplus, the report shows that if the price of raw materials remains stagnant since the first quarter, the balance of payments may change dramatically. If import and export upward trends remain changeless, Venezuela would end up having a current-account deficit of nearly 6.4% in its GDP. (El Universal, 10-22-2011; http://www.eluniversal.com/economia/111022/morgan-stanley-sees-venezuela-as-latams-weakest-link)

Venezuela sells U$D 3 billion of 15-year bonds in local market

Venezuela sold U$D3 billion of bonds due in 2026, swelling total issuance this year to a record U$D 7.2 billion as President Hugo Chavez looks to finance government social programs ahead of his re-election bid. The bonds were priced at 95 cents on the dollar to yield 11.75%, according to a statement published on the Public Credit Office’s website. Venezuelans who bought them in bolivars at the official rate of 4.3 per dollar can sell the notes abroad at a discount to obtain foreign currency, a practice that skirts currency controls imposed in 2003. (Latin American Herald Tribune, 10-23-2011; http://www.laht.com/article.asp?ArticleId=435651&CategoryId=10717)

Food sales dropped 3.71% in September, supermarket sales down

Food sales dropped for the seventh consecutive month according to a poll taken by the Food Industry Association (CAVIDEA) with shows that tonnage went down 3.71% in September for 12 basic items: rice, pasta, oats, pasteurized milk, powdered milk, sardines, cured meats, tuna, oil, margarine, mayonnaise and tomato paste. The President of the National Supermarket Association, Luis Rodríguez, points out that sales volumes have gone down in the past months as consumers have less money available for large scale purchases. More in Spanish:  (El Universal, 10-25-2011; http://www.eluniversal.com/economia/111025/las-ventas-de-alimentos-cayeron-371-durante-septiembre and El Nacional, 10-25-2011; http://www.el-nacional.com/)

Nicaragua hosts 7th PETROCARIBE Ministerial Council

Representatives of PETROCARIBE from Latin America and the Caribbean arrived in Managua, Nicaragua, to participate in the Seventh Ministerial Council October 24-25. The goal of the summit is to analyze the social and economic impact of said energy initiative. The Venezuelan Energy and Oil Ministry says Nicaragua has confirmed the attendance of Antigua and Barbuda, Belize, Cuba, Dominica, Grenada, Guatemala, Guyana, Haiti, Jamaica, Dominican Republic, San Kitts and Nevis, Saint Vincent and the Grenadines, Suriname and Venezuela. (AVN; 10-24-2011; http://www.avn.info.ve/contenido/nicaragua-hosts-7th-petrocaribe-ministerial-council)

Commodities

Venezuelan oil basket spikes to U$D 104.79 per barrel

The average price of the Venezuelan oil basket gained U$D 2.74 during the week and ended at U$D 104.79 per barrel from October 17 to October 21. The Venezuelan basket of crude oil and products averages U$D 99.58 per barrel.

According to the Ministry of Energy and Petroleum, "the average price of crude oil ended the week with an upward trend, mainly driven by favorable macroeconomic data in the United States, the weakness of the US dollar against other currencies, and expectations about plans to contain debt crisis in some European countries." (El Universal, 10-21-2011; http://www.eluniversal.com/economia/111021/venezuelan-oil-basket-spikes-to-usd-10479-per-barrel)

Venezuelan heavy metals mining starves for cash

Ciudad Guayana, the only planned city in Venezuela, is a far cry from its designers’ vision fifty years after it was launched. The area holds important deposits of gold, iron and bauxite, yet the local industries, which employ 1.6 million Venezuelans, has languished in recent years. “This government destroyed industry here,” Pablo Perez, the opposition governor for one of Venezuela’s richest states, Zulia, said on a recent visit to the area. (The Gulf Today, 10-23-2011; http://www.gulftoday.ae/portal/28f7072d-9694-4858-8e09-7bf53401fb3d.aspx)

Commissions for gold transference to joint companies set up

The Ministry for Basic Industries and Mining (MIBAM) has set up a transition and negotiation commission to transfer gold reserves to joint companies with the Venezuelan government as the major shareholder. The commissions are divided into sub commissions such as mining and plant, finances and fiscal, legal, labor, small mining, environment, industrial safety, occupational, communications and social development. (Veneconomy, 10-22-2011; http://www.veneconomy.com/site/index.asp?ids=44&idt=28135&idc=2)

Catalytic cracking unit at Venezuela refinery restarts operations

The 89,000-bpd catalytic cracking unit of Cardón refinery, the second largest in Venezuela, has begun its start-up protocol after a failure that disrupted operations in the unit last week, a PDVSA source told Reuters. (El Universal, 10-24-2011; http://www.eluniversal.com/economia/111024/catalytic-cracking-unit-at-venezuela-refinery-restarts-operations)

Government to import 300 thousand tons of rice

With rice production down 13% from initial projections, additional imports will be required for a total of 300,000 tons, according to the President of the Rice Producers Association (FEVEARROZ), Fuaz Kassen. More in Spanish at: (Ultima Hora Digital, 10-24-2011; http://ultimahoradigital.com/ultimahora/detalles_noticias.php?id=18613)

International Trade

High level bilateral meetings held in Bogotá, trade rules extended for 90 days

During a trip to Bogotá, Foreign Minister Nicolás Maduro and Interior Minister Tarek El Aissami met with Colombian President Juan Manuel Santos in order to discuss plans for a meeting between Santos and President Chavez. Maduro met separately with Colombia’s Foreign Minister María Ángela Holguín to review gasoline and gas sales, as well as major projects such as a joint oil pipeline company that could be established by PDVSA and Colombia´s ECOPETROL that would go through both nations. As a result of the meeting former Andean trade rules have been again extended 90 days in order to establish a new system within ALADI. El Aissami and his Colombian counterpart Juan Carlos Pinzón agreed to exchange border officials to improve efforts against drug trafficking. More in Spanish at: (AVN, 10-25-2011;  http://www.avn.info.ve/node/83832; http://www.avn.info.ve/node/83842; and El Universal10-25-2011; http://www.eluniversal.com/nacional-y-politica/111025/caracas-y-bogota-intercambiaran-oficiales-enlace-para-la-frontera)

Cuba absorbd over 70% of BANDES aid funds

Cuba has found the state-run Venezuelan Bank for Economic and Social Development (BANDES) to be a true lifesaver in providing funds in order to avoid a shipwreck. Up to September 2011, 70% of the BANDES International Cooperation Fund (FCI) has aimed at "supporting" the Cuban government and paying for projects between Havana and Caracas. Data was obtained by El Universal within the "Financial Summary of the Executive Management for International Cooperation and Finance" released by Bandes, and updated as of September 2011. The report shows, among other things, the interest of the government of President Hugo Chávez in strengthening international cooperation, particularly with Cuba, but also with Bolivia and Nicaragua. (El Universal, 10-24-2011; http://www.eluniversal.com/economia/111024/cuba-consumes-more-than-70-of-bandes-aid-funds)

Politics

Government doctors clain Chavez in optimal health

President Hugo Chavez is in optimal health after undergoing cancer treatment, doctors on his medical team said Saturday. The Venezuelan doctors spoke out to dispute a surgeon's remarks about Chavez's condition. Dr. Salvador Navarrete has been quoted as saying in a recent interview that he believed the president's prognosis "is not good" and that the life expectancy in such cases can be as little as two years. Dr. Fidel Ramirez, one of Chavez's doctors, read a statement at a televised news conference Saturday saying Chavez had never been a patient of Navarrete. The doctors questioned the surgeon's ethics, saying he is wrong and doesn't have access to Chavez's medical information. Ramirez said Chavez's health is "absolutely satisfactory, with an excellent prognosis." Ramirez, who is a brother of Chavez's close confidant and oil minister, Rafael Ramirez, declined to answer questions about the type of cancer or where the tumor was located. (AP, 10-24-2011; http://www.google.com/hostednews/ap/article/ALeqM5geGLgy2I8MhhRMaudTCN7EOYFvxg?docId=ebd3ba194cb147d49d15de38c6218aa6)

Chávez to meet Argentine counterpart in November

In a telephone call by President Chavez to Cristina Kirchner, to congratulate her upon reelection, both heads of state agreed to “meet next November to continue consolidating the strategic alliance between both nations”. More in Spanish: (AVN, 10-25-2011; http://www.avn.info.ve/node/83706)

Former Chavez VP says the President would lead polls by a comfortable margin over 19%

President Hugo Chavez would lead the upcoming polls by a comfortable margin over 19%, according to a survey by the Institute for Data Analysis (IVAD), which interviewed 1200 people nationwide between September 24th and October 2nd of this year.  The IVAD survey also reported that 71.8% of those polled looks favorably upon the Chavez Administration, according to journalist Jose Vicente Rangel during his Sunday television talk show. (AVN, 10-23-2011; http://www.avn.info.ve/contenido/chavez-would-lead-polls-comfortable-margin-over-19)

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.

October 11th, 2011

Economics & Finance

PDVSA will pay interest this week on 2017, 2027 and 2037 bonds

In a press release, PDVSA announced that "according to the conditions," this Thursday it will pay out interest on bonds issued during in 2007. More in Spanish. (El Mundo, 10-10-2011; http://www.elmundo.com.ve/noticias/petroleo/pdvsa/pdvsa-paga-esta-semana-intereses-de-bonos-2017,-20.aspx)

70% of foods consumed locally are imported

According to statements by senior government spokesmen, 70% of food consumed by Venezuelans comes from abroad given the Government’s priority for avoiding shortages as experienced in early 2007. More in Spanish. (El Mundo, 10-10-2011; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/70--de-los-alimentos-consumidos-por-los-venezolano.aspx)

What countries export beans to Venezuela?

President Chavez has said over half of the beans we eat are imported. He complained and proposed boost agriculture. According to the National Bureau of Statistics, the following countries send beans to Venezuela: China, Argentina, Nicaragua and Hong Kong. During the first half of 2011 Venezuela imported a total of 42,356 tons, 8% more than last year. More in Spanish. (El Mundo, 10-10-2011; http://www.elmundo.com.ve/noticias/economia/agro/¿de-que-paises-vienen-las-caraotas-que-compra-vene.aspx)

TAL CUAL says government incompetence is causing a national collapse

TAL CUAL daily says that countless and growing street protests and demonstrations, plus opinion polls, show that us as a country where almost nothing works, where basic public services are increasingly deteriorate, hurting both the economy and everyday living conditions for all people. More in Spanish. (Tal Cual, 10-10-2011; http://www.talcualdigital.com/index.html)

Commodities

Venezuela calls for discipline within OPEC

Energy and Petroleum Minister Rafael Ramírez says:"We firmly believe that we have to support unity and discipline, and correct what needs to be corrected, but the Organization of the Petroleum Exporting Countries (OPEC) is the only authority to coordinate oil policy" in petroleum producing countries. His remarks came after President Chavez twice proposed twice creating a new organization of "oil giants." Ramirez says Venezuela " will continue to protect OPEC, because there are several members that have a common interest with our country: to defend the price of oil because this commodity is a key element for our economic development." (El Universal, 10-10-2011; http://www.eluniversal.com/economia/111010/venezuela-calls-for-discipline-in-opec)

Russia lends Venezuela U$D 4 billion in return for oil projects

Russia agrees to lend Venezuela U$D 4 billion through 2013 for defense spending in return for gaining access to heavy crude and offshore gas fields in the South American country, as Russia’s OAO Rosneft and OAO Gazprom signed a cooperation accord with Venezuelan state oil company Petroleos de Venezuela SA. The $4 billion defense loan will be disbursed in two equal parts in 2012 and 2013. The two countries agreed separately to commit U$D 2 billion each to boost the capital of a bi-national bank, known as Evrofinance Mosnarbank SA, that will provide lending for housing projects and a joint-venture oil project in the Junin 6 block. (Bloomberg, 10-07-2011; http://www.bloomberg.com/news/2011-10-07/russia-lends-venezuela-4-billion-in-return-for-oil-projects-1-.html)

Mining operations hit ethnic groups at the Essequibo

A report released in 2002 by The North-South Institute, a Canadian NGO dedicated to promote social justice, shows that the high number of mining licenses granted by the Guyanese government in the Essequibo territory is affecting indigenous communities in the area. Destruction of crops, desecration of sacred sites, erosion of soil, water pollution, and abuse of indigenous women are part of the acts of injustice suffered by the ethnic groups, the report added. (El Universal, 10-10-2011; http://www.eluniversal.com/nacional-y-politica/111010/mining-operations-hit-ethnic-groups-at-the-essequibo)

Guyana to supply rice to Venezuela

Guyana expanded and extended its rice export agreements with Venezuela to over 70,000 tons for U$D 54 million by upgrading the three previous contracts and the establishment of a fourth contractual arrangement. It is reported in Caracas that the price fixed for this importation is around 44% above international market prices. More in Spanish: (El Universal, 10-10-2011; http://www.eluniversal.com/nacional-y-politica/111010/arroz-para-venezuela and RUNRUNES, 10-11-2011; http://www.eluniversal.com/opinion/111011/runrunes)

Logistics & Transport

Airlines require refloating and adjusted airfares

In view of recent air incidents, Capitan William Brach, former President of the Chamber of Air Transport Companies says authorities and airlines must agree on a plan to refloat the sector and approve increases in airline tickets prices,.

About 80% of the aircraft comprising Venezuela's commercial air fleet are 35 years old. "This implies that maintenance is more demanding, frequent and preventive," rather than investing in new aircraft. (El Universal, 10-10-2011; http://www.eluniversal.com/economia/111010/airlines-in-venezuela-require-refloat-and-higher-airfares)

National Guard seizes 460 kilos of cocaine in Belgian ship

The Bolivarian National Guard seized this Monday 460 kilos of cocaine in Belgian ship Juergen Schulte, coming from Belgium that was anchored in a port of the Orinoco river in Bolivar state, Venezuela’s southeast.

The 22-people crew (of diverse Asian, European and African, nationalities) tried to transport the cocaine coming from Colombia to France. They have been all arrested by Venezuelan authorities. (AVN, 10-10-2011; http://www.avn.info.ve/node/81570)

31 machines to execute operations in the country’s ports will arrive to the country in the next few days, among them 13 Reach Stacker cranes and 19 terminal tractors. Bolivariana de Puertos S.A. (BOLIPUERTOS) authorities made the announcement and pointed out that the fleet in Venezuelan sea terminals will improve with these equipments. (Veneconomy, 10-10-2011; http://www.veneconomy.com/site/index.asp?ids=44&idt=27972&idc=3)

Politics

Chavez travels to Cuba this weekend for medical examinations

President Chavez will travel to Havana, Cuba, this weekend, and remain for several days to undergo examinations to confirm the absence of cancerous cells in his body. “I have to go to Havana to spend some days there because I shall go now through very rigorous tests, with some of the most advanced scientific methods in the world. Here I am, in this week that is beginning, under medical observation, doing exercises, walking, sunbathing,” he said. (AVN, 10-10-2011; http://www.avn.info.ve/node/81559)

UN to approve Human Rights Report on Venezuela

The United Nations Human Rights Council will this week approve a Human Rights Report on Venezuela, including advice, points rejected by Venezuela, and points to be submitted to consultation by member States. Venezuela has presented its report for the Universal Periodical Review on Human Rights (UPR). A group of three UN rapporteurs (Guatemala, Burkina Faso, the Czech Republic) has been randomly selected and is in charge of drafting the final document. (AVN, 10-10-2011; http://www.avn.info.ve/node/81506; El Universal, 10-10-2011; http://www.eluniversal.com/nacional-y-politica/111010/un-expects-venezuela-to-accept-most-human-rights-recommendations)

Drugs found aboard the “Juergen Schulte” at the FERROMINERA docks in Guayana

The National Guard seized some 460 kilos of drugs hidden within the machine room of a ship named “Juergen Schulte” that came from Belgium and docked at Ferrominera Orinoco (Ciudad Guayana) ostensibly to load iron ore. 22 persons, all foreigners, were detained. The ship’s identity was not confirmed, although military sources say it may be Liberian. Other possible drug shipments are being investigated. More information in Spanish. (Correo del Caroní, 10-09-2011; http://www.correodelcaroni.com/index.php?option=com_wrapper&view=wrapper&Itemid=174&id_articulo=188811&catid=57)

IVAD Survey said that Chavez win elections with more than half of the votes against opponents

A survey by the Instituto Venezolano de Datos (IVAD) between September 24 and October 2, 2011 states that if presidential elections were conducted currently the President of the Republic, Hugo Chavez would win with 53, 7% of the votes of confronting the current governor of Miranda, Henrique Capriles Radonski (who obtained 34.6%), with 54.1% if the container was the former mayor of Chacao Leopoldo López (33.7%), and 54.3% facing the governor of Zulia, Pablo Perez, who achieved 32.4% of the vote. More in Spanish. (AVN, 10-10-2011; http://www.avn.info.ve/node/81390)

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.

November 8th, 2010

Economics, Trade & Business

Venezuela Raises Price Caps on Corn Flour and Rice

Venezuela’s government is raising the price of corn flour and rice by as much as 24 percent for the first time since March in a bid to avoid food shortages. The government, which regulates prices of basic food goods, raised the cap on corn flour, which is used to make the breakfast staple arepa, by 24 percent to 3.37 bolivars ($0.78) per kilo from 2.72, according to a resolution published today in the Official Gazette. It also raised the cap on rice by 22 percent to 4.46 bolivars per kilo from 3.66. (Bloomberg, 11-08-2010; http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=ax.eJPgsVULQ)

BCV proposes to reduce inflation thorough planning

Nelson Merentes, the president of the Central Bank of Venezuela, said that reducing the inflation rate is the government’s most important challenge; to that end, there is the need for several changes in terms of production and imports. (El Universal, 11-08-2010; http://english.eluniversal.com/2010/11/08/en_eco_esp_bcv-proposes-thoroug_08A4706255.shtml)

Venezuela growth hit by state seizures

Venezuela, the only Latin American nation still in recession in the last quarter of 2010, risks fresh blows to its growth prospects in 2011 after a spate of new nationalizations hitting key resource industries. Privately run steel manufacturing plant Sidetur was taken under state control after officials accused its operators of keeping productivity low and not doing enough to meet domestic demand. Earlier in October two glass factories went under state ownership in a measure seen largely as the result of President Hugo Chavez objecting to the companies' U.S. ownership. (UPI, 11-08-2010; http://www.upi.com/Science_News/Resource-Wars/2010/11/08/Venezuela-growth-hit-by-state-seizures/UPI-45111289217060/)

IOE: Venezuelan government is "destroying" the private sector

Venezuelan government actions against the private sector feed what has been described by the International Organization of Employers (IOE) as the "Venezuelan case." In the opinion of Antonio Peñalosa, Secretary General of the organization based in Geneva, the "blindness" of Venezuelan authorities is creating a scenario that will be difficult to overcome. The international business leader considers that the economic policy implemented by President Hugo Chávez is aimed at destroying the private enterprise. (El Universal, 11-08-2010; http://english.eluniversal.com/2010/11/08/en_eco_esp_ioe:-venezuelan-gove_08A4705053.shtml)

Politics

New agreements with Syria under discussion

In Damascus, Venezuelan Foreign Affairs Minister Nicolás Maduro and Syrian Prime Minister Mohamed Nayi Otri studied new ways to boost bilateral cooperation in economics, trade, oil and energy, amongst others areas. They are studying strategic alliances, a joint development and industrial projects, especially in crude refining and in the production and manufacturing of olive oil and cotton. (Veneconomy, 11-08-2010; http://www.veneconomy.com/site/index.asp?ids=44&idt=23805&idc=1)

"Chávez needs silence of the media," IAPA cautions

The government of President Hugo Chávez seeks to control the ideas of the media and impose silence, warned a report presented to the Inter-American Press Association (IAPA). The report on freedom of expression in Venezuela, which was presented in the context of the 66th General Assembly of the Inter-American Press Association (IAPA), considered that the Venezuelan government has decided to use the seizure of companies as a means of social control and therefore it needs the silence of the media. (El Universal, http://english.eluniversal.com/2010/11/08/en_pol_esp_chavez-needs-silenc_08A4704811.shtml)

Julio Borges: If the President does not believe in personal initiative, it does not believe in the Venezuelan

The National Coordinator of the Primero Justicia Party and National Assembly member Julio Borges said that "we have been insisting that most of the country disagrees with the government's radical way; recent opinion polls show that 70% of the population disapproves. But we want to talk to the 30% who think that the radical route is correct." "The President and the government do not believe in private enterprise, they do not believe in Venezuela, the simply do not trust the people that have the potential to create jobs, to grow and thrive." (Ultimas Noticias, 11-08-2010; http://www.ultimasnoticias.com.ve/capriles/cadena-global/detalle.aspx?idart=3450756&idcat=56657&tipo=2)

Venezuela, Colombia to install commission this Monday to boost bilateral trade

Venezuela and Colombia will install this Monday in Caracas a bilateral commission to study the integral cooperation agreements endorsed by the two countries, as established by the presidents Juan Manuel Santos (Colombia) and Hugo Chavez (Venezuela) during a meeting held past Tuesday. The commission will be installed in the headquarters of the Science, Technology and Intermediate Industries Ministry, and the Minister and Vice President for Productive Economy Ricardo Menendez will chair the encounter, Telesur informed. (AVN, 11-08-2010; http://www.avn.info.ve/node/27192)

Acid from Cuba

Those who thought that the unexpected suspension of last Sunday’s Aló Presidente would bring a brief respite from the anxiety generated by Chávez’s habitual Sunday announcements were mistaken. Instead, the state-owned Venezolana de Televisión broadcast an interview with Hugo Chávez from Cuba in which he dropped three bombshells whose repercussions are impossible to predict. (Veneconomy, 11-08-2010; http://www.veneconomy.com/site/index.asp?ids=44&idt=23805&idc=1)

Petroleum & Energy

Revenues of Pdvsa foreign subsidiaries down 7 percent

State-run oil holding Petróleos de Venezuela (Pdvsa) recorded falling income for sales of oil and gas products, and byproducts, manufactured by its foreign subsidiaries. According to a report released by Pdvsa, in the six months ending June 30, 2010, the volume of sales of crude oil and refined products of oil and liquefied petroleum gas by Pdvsa subsidiaries abroad totaled 3.1 million bpd, 7.2 percent less than 3.34 million bpd on average in the first half of 2009. (El Universal, 11-08-2010; http://english.eluniversal.com/2010/11/05/en_ing_esp_revenues-of-pdvsa-fo_05A4697171.shtml)

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.