March 05, 2013

Economics & Finance

Experts lower GDP growth projection to 2% and more adjustments are on the way, according to Credit Suisse analysts who recently visited Caracas. Their conclusion is that "current political uncertainty seriously hinders economic policy making and there is growing pressure on FOREX supply". It adds: "Recent devaluation of the official exchange rate was timid, has not relieved pressures on the economy, and is unlikely that there will be other efficient and necessary fiscal and monetary policies". Credit Suisse says one of the mistakes made was not providing an alternate vehicle for FOREX transactions, which has raised the parallel market. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

No FOREX relief in sight as long as Giordani remains

According to Credit Suisse experts there is no alternate system for legal FOREX sales in sight as long as Finance and Planning Minister Jorge Giordani remains in office. They believe "Giordani will remain at his post and keep his influence on key economic policy decisions, if and when Chavez remains President." It says his departure is "too great a risk for current equilibrium within chavismo". More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

FOREX allocation restricted on finished products

Requests for importing finished products have been restricted by the "Supreme Authority in charge of Optimizing the Exchange System", after Planning and Finance Minister Jorge Giordani demanded a review of applications pending from 2012 to determine which will receive the prior 4.30 per U$D rate. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

Government and PDVSA consolidated debt rose to U$D 144.8 billion in 2012, according to figures from the Ministry for Finance and Planning. This is up from U$D 114.1 billion in 2011, an increase of 27%. These figures do not include Chinese loans or PDVSA's debt with the Central Bank, which would make the number considerably higher. More in Spanish: (El Universal, 03-05-2013; http://www.eluniversal.com/economia/130305/deudas-del-gobierno-central-y-pdvsa-suman-1448-millardos)

Scarcities are due to lower productivity, not increased demand

According to DATANALISIS President Luis Vicente León says supply problems are not due to increasing demand but rather stem from lowered production by State controlled companies and fewer imports. The Government has been accusing private industry of lowering production in order to receive price adjustments, but private sector capacity is lower due to lack of raw material, FOREX scarcity, delays in permits and bottlenecks in port procedures. More in Spanish: (El Universal, 03-05-2013; http://www.eluniversal.com/economia/130305/mercado-sufre-la-baja-oferta-de-empresas-del-estado)

Inflation pressures Government to raise the minimum wage. Any such decision would also increase liabilities with State employees and have a negative impact on the nation's economy. More in Spanish: (El Mundo, 03-05-2013; http://www.elmundo.com.ve/Noticias/Economia/Laboral/Gobierno-analiza-anticipar-aumento-del-salario-min.aspx)

CORPOELEC debt rises, bills remain unpaid 18 months

According to Central Bank data, the National Electricity Corporation (CORPOELEC) indebtedness rose 25%. CORPELEC now owes local contractors U$D 8 billion at the prior exchange rate and some bills have gone unpaid for 18 months. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/) 

Commodities

26 days with no aluminum production, and 7 with no iron

For 26 days VENALUM's aluminum plant has been unable to supply domestic metal transformers weeks; and SIDOR has now been 7 days without receiving iron ore from FERROMINERA ORINOCO,  and is eating up inventories. At VENALUM production is down to minimum service in order to avoid damages. Private transforming plants are now down to "zero". It is now reported that the strike FERROMINERA ORINOCO ended yesterday with an agreement between the company and workers; and that tensions are now lower at VENALUM as talks have begun. More in Spanish: (Tal Cual, 03-04-2013; http://www.talcualdigital.com/index.html and  Últimas Noticias; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/suspenden-paro-en-ferrominera-y-venalum.aspx)

Minister claims over 25,000 tons of alleged hoarded food is available to the public

Trade Minister Edmee Betancourt says a total 25,774 tons of food she claims was hoarded by private business have been seized and placed at the disposal of the public. (AVN, 03-02-2013; http://www.avn.info.ve/contenido/over-25000-tons-hoarded-food-made-available-people)

International Trade

CASA imported 983 tons of frozen beef for PDVAL and MERCAL. The shipment arrived in Puerto Cabello from Puerto Limón, Costa Rica. 11 laden vessels remain at bay in Puerto Cabello. More in Spanish:  (Notitarde, 03-04-2013; http://www.notitarde.com/La-Costa/Casa-importo-983-toneladas-de-carne-congelada-para-surtir-Pdval-y-Mercal/2013/03/04/169446; El Carabobeño, http://www.el-carabobeno.com/impreso/articulo/51873/-al-puerto-carabobeo-arribaron-938-toneladas-de-carne-congelada) 

Politics

Maduro boots U.S. attaché, suggests Chavez's cancer may have been "innoculated"

Venezuela accused its domestic and foreign enemies of "attacking" ailing President Hugo Chavez and expelled a U.S. Embassy attaché accused of seeking military support for a plot against the government, according to Vice President Nicolas Maduro. David Delmonaco, an Air Force attaché for the U.S. Embassy in Caracas, was expelled "for being implicated in (a) conspiratorial plan," the country's information ministry said.  A senior Obama administration official told CNN that the United States "denies the charge that the air attaché, or anyone else in our embassy or the U.S. government, was plotting against the Venezuelan government." US officials expressed sympathy for President Chavez. Maduro also said there are "strong indications" that Chavez himself, fighting a battle with cancer, was somehow infected by outsiders. Maduro's comments came after he met with the country's top officials about Chavez's worsening health condition. These are the "most difficult moments we have experienced" since Chavez' surgery on December 11, he said. Maduro said a more detailed report on the president's condition is forthcoming. (CNN, 03-05-2013; http://edition.cnn.com/2013/03/05/world/americas/venezuela-chavez-main/index.html?iref=allsearch; El Universal, 03-05-2013; http://www.eluniversal.com/nacional-y-politica/130305/venezuelan-government-evicts-us-defense-attache; http://www.eluniversal.com/nacional-y-politica/130305/us-government-expresses-sympathy-for-president-chavez)

Chávez has new infection, breathing problems worsen

An official communiqué just out says President Chávez now faces a "new and severe respiratory infection” and his "general health remains critical". Communications and Information Minister Jesús Villegas dispatched written statement from the Military Hospital in Caracas saying "there is deterioration of the respiratory system" and adding that the President is receiving "high impact chemotherapy, among other treatment." (The Wall Street Journal, 03-04-2013;  http://online.wsj.com/article/SB10001424127887323494504578341151326106178.html; and more in Spanish: AVN; http://www.avn.info.ve/contenido/presidente-ch%C3%A1vez-enfrenta-nueva-infecci%C3%B3n-respiratoria; El Universal, http://www.eluniversal.com/nacional-y-politica/130305/presidente-chavez-presenta-nueva-y-severa-infeccion)

Venezuelans protest as Maduro says Chavez in chemotherapy

Venezuelans marched in Caracas and other cities yesterday; demanding more information on President Hugo Chavez’s health after the government said he’s undergoing chemotherapy following cancer surgery. Vice President Nicolas Maduro, who has been running the country in the self-declared socialist’s absence, said March 1 that Chavez is undergoing chemotherapy after surgery for an undisclosed type of cancer in Cuba more than two months ago. Maduro said Chavez is in “good spirits,” in spite of the severity of the treatment. (Bloomberg, 04-03-2013; http://www.bloomberg.com/news/2013-03-04/venezuelans-protest-as-maduro-says-chavez-getting-chemotherapy.html; El Universal, http://www.eluniversal.com/nacional-y-politica/130304/demonstrators-demand-the-truth-about-venezuelan-president-chavezs-heal; Reuters, http://www.reuters.com/article/2013/03/03/us-venezuela-chavez-idUSBRE9220BG20130303; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=698757&CategoryId=10717; The Washington Post, http://www.washingtonpost.com/world/the_americas/opposition-protests-in-venezuela-demanding-details-about-health-of-president-chavez/2013/03/03/43f42e8c-8422-11e2-a80b-3edc779b676f_story.html; Fox News, http://www.foxnews.com/world/2013/03/02/venezuela-says-chavez-receiving-chemotherapy/)

Opposition discussing single ballot option, Capriles nomination

Talks are underway within the Democratic Unity Conference on conditions placed by some political parties before again endorsing Henrique Capriles Radonski as the only opposition presidential candidate. Sources within the Conference say it is "almost a done deed" that Capriles's party, Primero Justicia will now back the proposal for a single opposition presence on the ballot. Capriles himself is said to favor the proposal. The issue of no reelection depends on the mandate´s duration, and there seems to be a positive stance on creating a broader campaign command. More in Spanish: (El Nacional, 03-05-2013; http://www.el-nacional.com/)

Venezuela says it’s tracking opposition leader in U.S.

The bruising and often bizarre world of Venezuelan politics would seem to be a long way from New York City, but a top official here said this weekend that the government of President Hugo Chávez was tracking the movements of a prominent opposition politician while he was on a trip to Manhattan. “We have him closely monitored,” Vice President Nicolás Maduro said of opposition leader, Henrique Capriles Radonski. “I have all the data, exactly where he is in Manhattan, in New York, at this moment,” Mr. Maduro said on government-run television, looking at his cell phone as if checking information sent to him in a text message or an e-mail. (The New York Times, 03-03-2013; http://www.nytimes.com/2013/03/04/world/americas/venezuela-says-its-tracking-opposition-leader-in-us.html?_r=0)


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 15th, 2013

Economics & Finance

Pro government congressman warns Venezuela reaching limit for oil funding

Jesús Faría, a National assembly member from the ruling PSUV party warns that a fiscal reform is needed to increase non-oil income and says "at this time we are reaching the financial limit" of income provided from oil. He called for a progressive tax structure where those who earn more should pay a greater percentage of their income. More in Spanish: (El Mundo, 01-15-2013; http://www.elmundo.com.ve/Noticias/Economia/Politicas-Publicas/Faria--Venezuela-esta-llegando-al-limite-en-el-uso.aspx)

Only the government expects 6% growth in 2013, all others estimate slowdown to 2-4%

Venezuela's economy grew 5.5% in 2012, along with 20.1% inflation, a huge fiscal deficit and a restricted allocation of foreign currency in the market. The government has projected 6% growth for 2013, but this prediction is conditioned by pending fiscal and exchange adjustments, as well as reduced spending. As a consequence, private analysts, investment bankers and multilateral agencies expect growth will actually drop to somewhere between 2-4%. The UN Economic Commission for Latin America expects a 2% slowdown. More in Spanish: (El Mundo, 01-15-2013; http://www.elmundo.com.ve/)

Food shortages bigger worry than Constitution

At a bustling food market in downtown Caracas, armed officers belonging to President Hugo Chavez’s National Bolivarian Guard marched by boxes of lettuce and tomatoes, checking prices and storage rooms. The inspection is part of a nationwide campaign to crack down on over-pricing and hoarding the government blames for shortages of basic goods, from toilet paper to sugar. The government said today that consumer prices in December jumped the most in 2 1/2 years, highlighting the growing economic problems that are amassing as Chavez’s battle with cancer unleashes a power struggle. (Bloomberg, 01-11-2013; http://www.bloomberg.com/news/2013-01-11/chavez-s-food-shortages-bigger-worry-than-venezuela-constitution.html)

Black money market thrives as economists say Venezuela is on track to have the highest inflation rate in the world in 2013. Paula Newton explains. (CNN; 01-14-2013; http://edition.cnn.com/video/#/video/world/2013/01/14/pkg-newton-venezuela-economy.cnn)

Commodities

State-run aluminum industries face crisis early in 2013

A bleak new year has begun for Venezuela’s aluminum makers after fierce labor protests and an output decline caused by shortages in raw materials and spare parts in 2012. Union leaders continue to call for further investment and subsidies for industries which lack financial capacity to meet fixed costs; while officials claim improved conditions are expected in 2013. (El Universal, 01-12-2013; http://www.eluniversal.com/economia/130112/venezuelan-state-run-aluminum-makers-face-crisis-early-in-2013)

US oil byproduct sales to Venezuela up 195% in 2012

According to US Energy Department data, petroleum byproduct exports to Venezuela rose significantly from January to October 2012. The figures reflect complicated operating conditions in the Venezuelan oil-refining sector last year with the US supplying an average 71,000 barrels of by-products to Venezuela, a 195% hike over 2011. More in Spanish: (El Universal, 01-12-2013; http://www.eluniversal.com/economia/130112/us-sales-of-oil-by-products-to-venezuela-up-195)

Agriculture products cost rose 35% in 2012, basic food basket up 28.5%

Agriculture product prices rose 35% in 2012, according to Central Bank data; with an 11% jump in December alone. Farm representatives say rising transportation costs, scarce spare parts and problems acquiring fertilizers have hit crop prices. The Teachers Federation Center for Social Analysis says prices in the basic food basket - subject to price controls - rose an average 28.5% last year, and that "2.2 minimum wage salaries are needed to pay for the monthly basket". More in Spanish: (El Universal, 01-14-2013; http://www.eluniversal.com/economia/130115/el-precio-de-los-productos-agricolas-se-disparo-35-en-2012 and El Nacional; http://www.el-nacional.com/)

Wheat inventories may exceed storage capacities

The Wheat Processing Association warns that due to recently increased wheat purchases caused by of recent scarcities "granaries are now full, ships are waiting at bay and others are on their way, which can exceed storage facilities".  (El Universal, 01-14-2013; http://www.eluniversal.com/economia/130114/delays-in-venezuelan-seaports-results-in-wheat-surplus; and more in Spanish: El Nacional; http://www.el-nacional.com/)

International Trade

Venezuela's trade surplus with the United States dropped U$D 9.2 billion

According to recent data from the US Commerce Department, Venezuela's trade with the United States dropped 31% between January and November 2012, to U$D 19.7 billion, U$D 9.2 billion less than the same period of 2011. The traditional surplus (imports minus exports) dropped along a historic rise in imports from the US. More in Spanish: (El Mundo,01-14-2013; http://www.elmundo.com.ve/Noticias/Economia/Politicas-Publicas/Superavit-comercial-de-Venezuela-con-Estados-Unido.aspx)

Logistics & Transport

34.3% advance work has been completed on expansion and modernization of La Guaira Port, according to the General Pedro Castro, Deputy Minister of Air and Aquatic Transport. Completion is scheduled for 2014. (Bolipuertos, 01-14-2013; http://www.bolipuertos.gob.ve/noticia.aspx?id=6606)

37 vessels remain at bay in Puerto Cabello, and one sugar laden ship from Brazil has been waiting since December 23rd; others are bearing wheat, soy and rice paddy. Ship count included 7 tankers, 2 carrying vehicles, and 2 cattle ships. More in Spanish: (Notitarde; 01-15-2013; http://www.notitarde.com/La-Costa/Buque-con-azúcar-espera-en-bahía-de-Puerto-Cabello-desde-el-23-de-diciembre/2013/01/15/159738)

Politics

Opposition to challenge top court ruling on Chavez swearing-in at regional court

Venezuela’s opposition plans to present a case before a regional human rights court to challenge a Supreme Court decision that allowed the indefinite postponement of President Hugo Chavez’s inauguration. The case is being prepared by a group of lawyers for the country’s opposition coalition, said Gerardo Blyde, a lawyer and opposition politician. He told reporters that it’s not yet clear when the case will be brought before the Costa Rica-based Inter-American Court of Human Rights. (The Washington Post, 01-12-2013; http://www.washingtonpost.com/world/the_americas/venezuela-opposition-to-challenge-court-ruling-on-chavez-swearing-in-before-regional-court/2013/01/12/34147e32-5ce9-11e2-b8b2-0d18a64c8dfa_story.html; Fox News, http://www.foxnews.com/world/2013/01/12/venezuela-opposition-to-challenge-court-ruling-on-chavez-swearing-in-before/)

Democratic Unity Board asks the OAS and MERCOSUR to debate Venezuela

Ramón Guillermo Aveledo, chairman of Venezuela's united opposition has written MERCOSUR and the OAS calling for them to act upon the Supreme Court's decision to rupture the democratic process. In a letter, Aveledo says that extension of the Presidential term is "a clear case of usurped authority, and violates clearly established legal and constitutional rules". More in Spanish: (El Universal, 01-15-2013; http://www.eluniversal.com/nacional-y-politica/130115/mesa-solicito-a-oea-y-mercosur-debatir-caso-de-venezuela)

Brazil calls for rapid elections if Chavez dies

High ranking Brazilian officials report this country has asked Venezuelan authorities to hold elections "as soon as possible" in case President Chavez dies; the request was made to Vice President Nicolás Maduro. Although the Venezuelan Constitution calls for new elections in 30 days after the death of the President, some fear a change in rules should Maduro be likely to lose at the polls. More in Spanish: (Tal Cual, 01-15-2013; http://www.talcualdigital.com/index.html)

US and Latin America are monitoring the situation in Venezuela

Roberta Jacobson, US Assistant Secretary of State for Latin America says the US and other Hemispheric governments have been in contact over the situation in Venezuela, and adds: "We would like the situation to become clearer" and says if "new elections" are required by the Venezuelan Constitution they would hope these elections are "open to all". More in Spanish: (El Universal, 01-15-2013; http://www.eluniversal.com/nacional-y-politica/130115/estados-unidos-y-latinoamerica-revisan-situacion-venezolana)

Jaua says "people’s will above bourgeois formalities"

Elías Jaua, Vice President of the government party PSUV in the central region claims the people’s will is above bourgeois formalities used by right-wing sectors. “Beyond legal technicalities, the problem is who governs in the country: whether the people or the bourgeoisie. And here rules the Bolivarian people with the leadership of Hugo Chavez". Jaua made his remarks at an assembly called in support of the recent ruling of the Supreme Tribunal on the President's continuity in office. (AVN, 01-14-2013; http://www.avn.info.ve/contenido/people039s-will-above-bourgeois-formalities)

Trio of Chavez protégés hold key to Venezuela's future

A month after President Hugo Chavez left Venezuela for a fourth cancer operation, his commanding control over the government is slowly moving into the hands of an unlikely trio of protégés who may shape the future of the nation. Chavez's cancer has left him in serious condition in a Cuban hospital and created a leadership vacuum after 14 years of cult-of-personality socialism that has made him a dominant figure in Latin America. Given a micro-managing style that put an inordinate number of decisions in his hands, and his unique ability to control an alliance that ranges from union activists to military officers, that leadership is now being shared out among his top allies. (Reuters, 01-14-2013; http://www.reuters.com/article/2013/01/14/us-venezuela-chavez-trio-idUSBRE90D07Z20130114)

Government political team meets in Havana

Vice-President Nicolás Maduro and Cuban President Raúl Castro met at Havana's according to Cuban official media. National Assembly Speaker and ruling party Vice-President Diosdado Cabello also attended the meeting, along with Oil Minister Rafael Ramírez and Solicitor General Cilia Flores. No meeting agenda was revealed. (El Universal, 01-14-2013; http://www.eluniversal.com/nacional-y-politica/130114/venezuelan-government-political-team-meets-in-havana; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=661837&CategoryId=10717)

Officials claim Chavez conscious, clinical course favorable; brother says he is not in coma and recovering

Communications and Information minister Ernesto Villegas officially said the President’s respiratory infection has been controlled. “The President is conscious, communicating with his family, his political team and the medical team which takes care of him, keeping updated with relevant information”. His brother, Adan Chavez, who is also governor of Barinas state, denied that the president was in a coma and that his family was considering disconnecting life-support machines, according to a statement published on the Barinas state government’s website. “We know this is part of a dirty war by the necrophiliac opposition in this country”. (Bloomberg, 01-12-2013; http://www.bloomberg.com/news/2013-01-12/venezuela-s-chavez-not-in-coma-and-recovering-brother-says.html; Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=661972&CategoryId=10717; AVN, 01-14-2013; http://www.avn.info.ve/contenido/chavez-conscious-clinical-course-favorable; El Universal, http://www.eluniversal.com/nacional-y-politica/130113/chavez-requires-specific-actions-for-respiratory-failure; http://www.eluniversal.com/nacional-y-politica/130114/people-have-the-right-to-know-whether-the-president-elect-is-to-rule; Reuters, http://www.reuters.com/article/2013/01/14/venezuela-chavez-idUSL2N0AJ0DA20130114; Bloomberg, http://www.bloomberg.com/news/2013-01-14/chavez-s-recent-health-is-favorable-infection-controlled.html; The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelas-government-says-chavez-is-conscious-and-responding-to-treatment-for-lung-infection/2013/01/13/82857c0c-5dec-11e2-8acb-ab5cb77e95c8_story.html)

HRW says Venezuela’s Government acts to curb discussion about Chavez health, inauguration

Venezuela should end censorship and intimidation of media that challenge the official line regarding President Hugo Chávez’s health and inauguration, Human Rights Watch said.
In recent days, the government has ordered a television station to cease transmission of spots that question its interpretation of the constitutional requirements for the re-elected president’s inauguration. Intelligence agents have searched the home and confiscated the computers of a blogger suspected of authoring tweets questioning official information provided about Chávez’s health. (Latin American Herald Tribune, 01-14-2013; http://www.laht.com/article.asp?ArticleId=662100&CategoryId=10717)

Opposition demands accurate information on the President's health, rejects governance from Cuba

Opposition parties say Venezuela's government is "paralyzed" and say Cuba's Castro brothers are only interested in keeping Venezuelan subsidies and not the problems of the people. Thomas Guanipa, Secretary General of Primera Justicia says: "We cannot understand how they speak of sovereignty when in fact they are being managed by foreign parties" More in Spanish: (El Nacional, 01-15-2013; http://www.el-nacional.com/)



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 11th, 2013

Economics & Finance

Moody's warns Venezuela faces risk of civil unrest, places debt rating under watch

With President Hugo Chavez unable to attend the inauguration for his next Presidential term originally scheduled to take place yesterday due to his seemingly terminal cancer, Venezuela faces a period of heightened political uncertainty. The current situation appears to revive the possibility that an opposition candidate could take over the presidency and with it begin to usher in economic reforms that could improve Venezuela's credit picture in the medium term. Regardless of who succeeds Chavez and which part of the political spectrum they represent, however, this potential opportunity is outweighed in the shorter term by risks associated with the political transition that could negatively impact Venezuela's rating if they crystallize. Moody's one of the major rating agencies in the global economy announced it would review Venezuelan short term debt short term in view of the instability triggered by a political transition in the absence of President Hugo Chavez. The Moody's statement mentions "risks associated with the political transition that could adversely affect the rating of Venezuela". The Moody's rating Venezuela's debt is B2 with a stable outlook, supported by high oil prices. (Latin American Herald Tribune, 01-09-2013; http://www.laht.com/article.asp?ArticleId=661215&CategoryId=10717; More in Spanish: El Universal; http://www.eluniversal.com/economia/130110/moodys-coloca-en-observacion-calificacion-de-la-deuda-venezolana)

Venezuela ranks lowest in Latin American in economic and individual freedoms

The Fraser Institute of Canada has presented a study on human freedom, which includes both individual and economic freedoms, in a total of 123 countries: Venezuela ranks 109, the lowest among Latin American nations. More in Spanish: (El Nacional, 01-11-2013; http://www.el-nacional.com/)

Economy on hold

President Chavez's absence has put important economic decisions on holds, among them a highly expected devaluation. (Tal Cual, 01-11-2013; http://www.talcualdigital.com/index.html)

Commodities

Minister Osorio blames the right for failures in food distribution

Food Minister Carlos Osorio is saying that recent failures in the distribution staples are caused by the Venezuelan right in order to create anxiety in the population. He claims that private processing plants, sugar mills, warehouses retained key products in order to destabilize the country. More in Spanish: (AVN; http://www.avn.info.ve/contenido/osorio-derecha-venezolana-provoc%C3%B3-fallas-distribuci%C3%B3n-alimentos)

National Guard in sugar mills, government regulates domestic and industrial sugar marketing

The National Guard has been sent to all sugar mills in order to check packaging and distribution of sugar, after the government ordered that 70% of sugar production must be assigned to domestic, not industrial use; and that dispatches must go directly to points of sale, not intermediaries. More in Spanish: (AVN; http://www.avn.info.ve/contenido/gobierno-regula-comercializaci%C3%B3n-az%C3%BAcar-para-uso-dom%C3%A9stico-e-industrial; El Universal, http://www.eluniversal.com/economia/130110/el-70-de-la-produccion-de-azucar-sera-para-los-hogares)

All SIDOR production lines closed with lower production

SIDOR's liquid steel production closed last year at levels going back to the 1980's; production of Direct Reduced Iren closed 18.2% lower; lime production dropped 21.5%; and steel slab production was paralyzed for weeks due to a deficit in raw material. More in Spanish: (El Universal; http://www.eluniversal.com/economia/130110/todas-las-lineas-de-produccion-de-sidor-cerraron-en-baja)

Logistics & Transport

Food bearing ships remain at bay for 3 weeks

A report this Monday on the situation at the Puerto Cabello Terminal shows 8 ships unloading bulk food and a total of 32 vessels remain at bay, some of them for more than 3 weeks. More in Spanish: (El Universal; http://www.eluniversal.com/economia/130110/barcos-con-alimentos-llevan-hasta-3-semanas-fondeados; Notitarde, http://www.notitarde.com/La-Costa/Buques-con-arroz-y-az%C3%BAcar-permanecen-en-el-%C3%A1rea-de-bah%C3%ADa/2013/01/09/158837; El Carabobeño, http://www.el-carabobeno.com/impreso/articulo/45331/baha-alberga-25-buques-en-cola-para-ingresar--a-los-muelles-de-puerto-cabello)

Politics

Supreme court rules that Chavez is on parliamentary approved leave

The Supreme Court has interpreted Article 231 of Venezuela's Constitution and ruled that the President's absence cannot be considered either temporary or permanent since the National Assembly unanimously voted to give him leave for more than 5 days. The Court's President, Luisa Estela Morales, also said that there are is no reason to call for a medical board. (AVN, 01-09-2013; http://www.avn.info.ve/contenido/supreme-court-chavez-leave-passed-parliament; Reuters, http://www.reuters.com/article/2013/01/09/us-venezuela-chavez-idUSBRE9080WP20130109; CNN; http://amanpour.blogs.cnn.com/2013/01/09/venezuelan-lawmaker-cuba-making-decisions-for-venezuela/?iref=allsearch; Fox News, http://www.foxnews.com/world/2013/01/09/venezuela-lawmakers-postpone-chavez-inauguration-opposition-says-it-violates/)

Maduro's hands are "tied" in key areas

Among other legal and Constitutional experts consulted, Gustavo Linares Benzo, says "the Court's ruling makes it very clear that the ruling President is Hugo Chavez and the Vice President cannot do anything beyond the Constitution or powers assigned to him in December". He added: "From today on he (Maduro) cannot name Ministers, Ambassadors or any military positions. Neither can he approve legal regulations, because the President did not delegate his regulatory powers". More in Spanish: (El Universal, 01-11-2013, http://www.eluniversal.com/nacional-y-politica/130111/juristas-alertan-que-maduro-esta-atado-en-asuntos-claves)

Tens of thousands rally for ailing Hugo Chavez in symbolic inauguration in Venezuela

Nothing shows the extent of Hugo Chavez’s grip on power quite as clearly as his absence from his own inauguration. Authorities gathered foreign allies and tens of thousands of exuberant supporters to celebrate a new term for a leader too ill to return home for a real swearing-in. In many ways, it looked like the sort of rally the president has staged dozens of times throughout his 14 years in power: The leader’s face beamed from shirts, signs and banners. Adoring followers danced and chanted in the streets to music blaring from speakers mounted on trucks. Nearly everyone wore red, the color of his Bolivarian Revolution movement, as the swelling crowd spilled from the main avenue onto side streets. (The Washington Post, 01-09-2013; http://www.washingtonpost.com/world/the_americas/venezuela-supreme-court-chief-says-president-hugo-chavezs-inauguration-can-be-postponed/2013/01/09/f5607c02-5aba-11e2-b8b2-0d18a64c8dfa_story.html; Fox News, http://www.foxnews.com/world/2013/01/10/venezuelan-government-plans-show-support-for-chavez-as-ailing-leader-swearing/)

Chavez allies gather as leader too ill for oath; PETROCARIBE and ALBA government express support

Regional allies of President Hugo Chavez will gathered to express support for the cancer-stricken leader whose absence from an inauguration is raising uncertainty in Venezuela. Bolivian President Evo Morales, Nicaragua’s Daniel Ortega and Uruguay’s Jose Mujica attended a government- organized rally in Caracas to express solidarity with the socialist leader, who is struggling to recover from surgery last month in Cuba. Other regional allies, including the presidents of Argentina and Ecuador sent their foreign ministers. A joint meeting of Petrocaribe-ALBA in Caracas member governments reaffirmed support for president Hugo Chavez. Among them, the Prime Minister of Saint Vincent and the Grenadines called Chavez "the light that illuminates the world". (Bloomberg, 01-10-2013; http://www.bloomberg.com/news/2013-01-10/chavez-allies-gather-as-venezuela-leader-too-ill-for-oath.html); (AVN, 01-10-2013; http://www.avn.info.ve/contenido/latin-american-caribbean-governments-back-chavez; http://www.avn.info.ve/contenido/alba-petrocaribe-countries-back-chavez; El Universal, http://www.eluniversal.com/nacional-y-politica/130110/petrocaribe-alba-support-venezuelan-presidents-continuity-in-office)

Uruguayan President says life will continue if Chavez does not survive

During his visit to Caracas, Uruguayan President José Mujica reaffirmed his solidarity with ailing President Hugo Chávez, and added "Chávez's legacy is enduring and hopefully he will overcome the terrible situation he is going through, but if he does not, life will continue." He also urged Venezuelan people to remain "calm" and stressed that he remains alert to "uncertain" situations. (El Universal, 01-10-2013; http://www.eluniversal.com/nacional-y-politica/130110/uruguayan-president-urges-venezuelans-to-remain-calm)

Dissenters convene January 23 rally against top court's ruling

Opposition legislators have signed a document rebutting the Supreme Court of Justice's decision ruling the president-elect's inauguration is "unnecessary" on the grounds of administrative continuity; and are calling a protest rally for January 23rd. 23rd. The document says the ruling "runs counter to the Constitution and undermines the State's democratic order." (El Universal, 01-10-2013; http://www.eluniversal.com/nacional-y-politica/130110/dissenters-convene-rally-on-january-23-against-top-courts-ruling)

Capriles: Court decision solves nothing but a problem within Chávez's party

Miranda State Governor Henrique Capriles has demanded that leaders of the ruling United Socialist Party of Venezuela (PSUV) "to respect their own followers and million Venezuelans who think differently" in referring to threats posed by authorities in government media against opposition leaders.
"Enough with threats and hatred! Venezuelans are tired of intimidation," he said during a press conference. (El Universal, 01-09-2013; http://www.eluniversal.com/nacional-y-politica/130109/capriles-court-decision-solves-nothing-but-a-problem-in-chavezs-party)

OAS respects Supreme Court decision

OAS Secretary General José Miguel Insulza says the organization respects the decision on delaying President Chavez's oath of office. More in Spanish: (AVN, 01-11-2013; http://www.avn.info.ve/contenido/oea-respeta-decisi%C3%B3n-poderes-del-estado-venezolano-sobre-juramentaci%C3%B3n-del-presidente)

US expects inclusive transition in Venezuela, confirms contact with Maduro

State Department spokesperson Victoria Nuland said the US hopes any political transition in Venezuela is democratic, transparent and includes all Venezuelans. She said Washington has been in direct contact with the Chavez regime and made specific proposals for an improved bilateral relationship, but that it is too soon to move forward. She confirmed Vice President Nicolás Maduro has had telephone contact with Roberta Jackson, Under Secretary of State for Latin America. More in Spanish: (Tal Cual, 01-11-2013; http://www.talcualdigital.com/index.html; El Universal, http://www.eluniversal.com/nacional-y-politica/130111/eeuu-espera-una-transicion-transparente-y-democratica-en-venezuela)

Spain calls for "serenity" in "delicate situation"

Spain's Secretary of State for Iberoamerican affairs Jesús Gracia has expressed his trust that President Chavez can recover and take on his duties; and called for "serenity" and "harmony" in facing the nation's uncertain situation. He said was speaking "prudently" because the situation is "delicate". More in Spanish: (Tal Cual, 01-11-2013; http://www.talcualdigital.com/index.html)



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.