International Trade
Inbound cargo at Puerto Cabello:
- Over 60,000 tons of sugar: 33,000 tons from
Brasil for Corporación de Abastecimiento y Servicios Agrícolas (CASA) and
31,000 tons from Ed & F Man for C.A. Azúcar
- Over 28,000 tons of wheat from Terra World Trade
for Molinos Carabobo
- 25,000 tons of wheat from Quebec, Canadá for Fábrica
de Pasta La Especial
- Over 3,600 tons of chicken, beef and margarine
from Brasil for CASA
- Over
2,000 tons of milk, meat and beans, in 83 containers, from Productos
Lácteos La Perfecta S.A., Matadero Nuevo Carnic, Ind Comercial San Martín,
Albanisa, Centrolac S.A., Eskimo S.A. y Matadero Central for Corporación
Venezolana de Alimentos and Corporación de Abastecimiento y Servicios
Agrícolas (CASA)
- 767 tons of appliances (LED TVs, air conditioners
and furnaces) from Lilly & Associate Intl S.A. for its subsidiary in
Venezuela
- Over 27 tons of rice from Brasil for CASA.
18 vessels remain at bay awaiting dock assignment.
More in Spanish: (Notitarde; http://www.notitarde.com/La-Costa/Llegaron-mas-de-dos-mil-toneladas-de-alimentos-2211327/2014/08/06/344124; Notitarde; http://www.notitarde.com/La-Costa/Llegaron-mas-de-60-mil-toneladas-de-azucar-2210804/2014/08/05/343816)
Logistics & Transport
IATA is insisting that Venezuela could become isolated,
flights cut by 55%
The International Air Transport Association (IATA) is
telling the government that if it does not pay its debts the nation could be
disconnected from the world, and it asking for it to not only reach agreements
but also honor them. Peter Cerda, IATA Vice President for the Americas says:
"Five airlines have reached
agreements, but only two have received the money agreed upon, not the other
three...and this is what most worries the other 19 airlines - the fact that
even if agreements are reached there are no guarantees they will receive the
amounts agreed upon. In the six months that have passed since the agreement,
the government has several times said it would pay and they are still waiting."
The CEO of the Venezuelan Association of Airlines (ALAV), Humberto Figuera, has
noted seats have been cut down by 55%. "The frequency of flights have been reduced to 207 so far this year,
trimming seats to nearly 31,000, which is 44.9% of the flight frequency,"
Figuera stated. (Ultimas
Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/iata-insiste-a-venezuela-que-puede-quedar-aislada.aspx#ixzz39hjDUxdP;
El Universal, http://www.eluniversal.com/economia/140807/venezuelan-govt-continues-meeting-with-airlines-to-resume-flights; http://www.eluniversal.com/economia/140806/international-flights-seats-down-almost-55-in-venezuela)
Oil &
Energy
Venezuela wants US$ 10 billion for CITGO assets
Petroleos de Venezuela SA (PDVSA), the nation’s
state-owned crude producer, said the U.S. oil refining and marketing assets
it’s seeking to sell are worth more than US$ 10 billion. “Their value is much, much more,” says Rafael Ramirez, president of
PDVSA. He said the company is receiving offers for assets of Houston-based
CITGO Petroleum Corp., without providing details on the value of the bids. CITGO
owns three refineries capable of handling about 749,000 barrels a day in
Louisiana, Texas and Illinois. It also operates the sixth-largest U.S. retail
gasoline chain through about 5,900 branded stations. CITGO had sales of US$ 42.3
billion last year and earnings before interest, taxes, depreciation and
amortization of US$ 1.8 billion. President Nicolas Maduro is seeking to sell
foreign refineries as the nation tries to raise cash, boost oil exports to
China and reduce the risk of having assets seized if it loses international
lawsuits brought by former oil partners. Contract disputes and expropriations
have been filed at the International Center for Settlement of Investment
Disputes and the International Chamber of Commerce’s Court of Arbitration by
mining and oil companies that operated in the country including Exxon Mobil
Corp., Gold Reserve Inc., Phillips 66 and ConocoPhillips. (Bloomberg: http://www.bloomberg.com/news/2014-08-06/venezuela-says-it-wants-10-billion-for-citgo-oil-assets.html)
Commodities
Agribusiness is operating in red due to
regulations and takeovers
Price controls and takeovers by the regime over
the past 12 years have caused Venezuela's agribusiness industry to operate at a
loss and brought on widespread scarcity, says expert Rodrigo Agudo, who calls
on the regime to admit "the economic
crisis the nation is going through" in order to "rescue domestic production". More
in Spanish: (Ultima Hora Digital; http://ultimahoradigital.com/news/noticiaunica.php?id=48683)
Economy
& Finance
Maduro in "no
rush" to raise gasoline prices; Ramírez says FOREX unification delayed
Economist José Guerra says that "president Maduro is carrying out economic
reforms drop by drop because he fears the political impact of taking all steps
at the same time", and adds that Maduro is sticking to socialist
ideology imposed by the late Hugo Chavez, and respects the more radical
political elements within his power base. Maduro now says there is "no rush" to raise domestic gasoline
prices as it "is not a necessity",
and called for a national debate on the matter: "If it takes a month, ...a year...ten years, then it will be...the
nation has resources to continue its development". At the same time
Economic Affairs Vice President Rafael Ramírez is now saying that before
implementation of a new and unified foreign currency exchange rate takes place
“certain conditions must be met such as
the issues of liquidity, savings and elements of monetary policy that are
underway. When we are ready, we will, we have it in agenda.” Veneconomy,
http://www.veneconomy.com/site/index.asp?ids=44&idt=40502&idc=2; El
Universal, http://www.eluniversal.com/economia/140807/economic-adjustments-in-parallel-with-deeper-socialism-in-venezuela; and
more in Spanish: El Universal, http://www.eluniversal.com/economia/140808/maduro-afirma-que-no-hay-apuro-para-aumentar-la-gasolina;
Ultimas Noticias, http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/maduro--no-hay-apuro-para-aumentar-la-gasolina.aspx;
El Mundo, http://www.elmundo.com.ve/noticias/actualidad/noticias/maduro-aseguro-no--tener-apuro--por-aumentar-el-pr.aspx;
El Nacional; http://www.el-nacional.com/)
Venezuelan bonds fall; country risk up
Venezuela's country risk has been on the rise since
July 24th, and if it now decides to issue bonds abroad to obtain funding, it
would have to pay a much higher interest rate than other countries such as
Ukraine and the remaining Latin American countries. Venezuela would have to pay
an interest rate amounting to 10.34 percent points above the interest rate paid
by the US, the country enjoying the lowest loan interest rate. On July 24, the
differential stood at 8.8 percentage points. (El Universal, http://www.eluniversal.com/economia/140806/venezuelan-bonds-fall-country-risk-up)
Government is withholding data on 2014 GDP
Neither the Central Bank or the government are
publishing any data, even partial, on GDP to date this year. Economic Affairs Vice
President Rafael Ramírez says publicly: "I
do not handle those numbers...those numbers are provided by the Central Bank". (Infolatam)
Economy is trapped in recession
In its latest report on the Venezuelan economy, Bank
of America Merrill Lynch says the nation is "trapped in recession". It says that despite the regime's decision
to withhold economic data; indicators show how serious the situation is with
non oil imports down 20% in the first four months of 2014, auto assembly
production down 86% production in the first semester and tax revenues down 4.9%
during the same period." The report estimates devaluation at an additional
229.8% in 18 months. More in Spanish: (El Nacional; http://www.el-nacional.com/)
China's DAGONG downgrades Venezuela to BB
DAGONG Global Credit Rating Co., Ltd. has downgraded
the local and foreign currency sovereign credit ratings of the Bolivarian
Republic of Venezuela from BB+ to BB-, each with a negative outlook. "Serious macroeconomic imbalance will drag
Venezuela into recession in the short term, and exacerbate the risk of social
unrest. Its large fiscal deficit, insufficient international reserves and the
pressure of significant devaluation of the local currency contribute to an
evident trend of decrease in the local and foreign currency solvency of the
government," says Dagong. (Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=2346676&CategoryId=10717)
China’s unlikely partnership with Venezuela
Why does China continue to invest heavily in unstable
and cash-strapped Venezuela? The answer, according to Margaret Myers, lies in
Beijing’s well-documented determination to enhance its energy security,
particularly in the wake of so many financial and political troubles. (The
International Relations and Security Network, http://www.isn.ethz.ch/Digital-Library/Articles/Detail/?id=182309)
Politics
HINTERLACES poll says 61% of Venezuelans are "without hope"
The HINTERENLACES polling
firm - regarded by many as partial to the government, reports that the world
that best describes Venezuelans is "worried"
and that 61% of all Venezuelans describe
themselves as "without hope",
while 38% say they are "confident". When asked if they are "content" or "bothered", 48% say content, and 49%
say bothered. More in Spanish: (El Universal, http://www.eluniversal.com/nacional-y-politica/140807/hinterlaces-dice-que-61-del-pais-esta-preocupado)
2,452 young people are or will be under trial for protesting while on parole; 15 have been remanded
home and 123 are in different detention centers or prisons. Twenty-three of
those in jail are students. The information was provided by Parlatino Deputy
Delsa Solórzano on Wednesday. (Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40515&idc=1; El
Universal, http://www.eluniversal.com/nacional-y-politica/140807/2452-young-people-released-pending-trial-123-detained-in-venezuela)
Intellectuals urge governments to advocate
Venezuelans' rights
A group of intellectuals led by Literature Nobel Prize
winner Mario Vargas Llosa have appealed to governments that have "amicable relations" with Venezuela
to plead for political prisoners and other Venezuelans, whose conditions have
been deteriorating. In an open letter published in Spanish daily newspaper El
País, the group denounced repression by the government of Nicolás Maduro during
student demonstrations, and particularly against the Venezuelan opposition. More
precisely, the group denounced the detention of opposition leader Leopoldo
López, harassment of journalist Teodoro Petkoff (80), and allegations against
deposed opposition deputy María Corina Machado. (El Universal, http://www.eluniversal.com/nacional-y-politica/140806/intellectuals-urge-governments-to-advocate-venezuelans-rights)
Prosecutor releases list of 56 companies investigated
for currency fraud
Venezuela's Prosecutor Luisa Ortega Diaz, has released
a list of 56 companies that are facing criminal proceedings over fraudulent use
of FOREX allocated by the defunct Currency Board (CADIVI). She said managers of
these companies must clarify the use of currency awarded by the State, as "several were reported to her office and were
under investigation." She later reported that 56 are companies
involved and released the list in her Twitter account @lortegadiaz. (AVN, http://www.avn.info.ve/contenido/prosecutor-releases-list-56-companies-investigated-currency-fraud)
Venezuelan FM arrives in Egypt to coordinate aid for
Gaza, sending 16 tons of aid and 240,000 barrels of oil
Venezuelan Foreign Minister Elías Jaua described as
invaluable the efforts of the Egyptian government to end Israel's military
attacks on the Palestinian people in the Gaza Strip. "The efforts of the Egyptian government are invaluable: First of all, in
terms of humanitarian protection of the Palestinian people. Secondly, the
political and diplomatic efforts made have led to a 72-hour ceasefire,"
the official noted. He also said Venezuela will send 16 tons of humanitarian
aid to the Gaza strip, and that the Venezuelan
government has agreed to deliver 240,000 barrels a year to the
Palestinian Authority this year and to increase this delivery to one million by
2015. (El Universal, http://www.eluniversal.com/nacional-y-politica/140806/venezuelan-fm-arrives-in-egypt-to-coordinate-aid-for-gaza;
Veneconomy, http://www.veneconomy.com/site/index.asp?ids=44&idt=40505&idc=3;
and more in Spanish: Agencia Venezolana de Noticias; http://www.avn.info.ve/contenido/venezuela-enviar%C3%A1-16-toneladas-ayuda-humanitaria-franja-gaza)
