Chief Economics Correspondent, Latin America, Mexico City, Mexico
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Jun 13, 2013
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Jun 9, 2013

Analysis: History may repeat itself for Mexico, Peru as Fed eyes exit

MEXICO CITY (Reuters) – Mexico and Peru’s popularity among foreign investors means they are among the emerging market economies most exposed to losses when the United States finally moves to take its foot off the monetary accelerator.

History shows that when U.S. interest rates jump – widely anticipated when the Federal Reserve begins reducing its $84 billion a month bond purchases – new foreign investment in Peruvian and Mexican financial assets drops by almost two-thirds.

Jun 5, 2013

PIMCO fund manager says Brazil tax move ‘unequivocal positive’

MEXICO CITY (Reuters) – Brazil’s move to drop a tax on foreign buying of its domestic bonds removes a major hurdle for foreign investors and enhances the country’s appeal, a senior portfolio manager with bond giant PIMCO said on Wednesday.

Michael Gomez, co-head of emerging markets at Pacific Investment Management Co, said removing the 6 percent levy on foreign transactions was an “unequivocal positive” for Brazil, which put the tax in place to discourage speculative capital.

Jun 4, 2013
May 25, 2013

Brazil needs to hike returns to fix infrastructure: Macquarie

BRASILIA/NEW YORK (Reuters) – Brazil should further hike the rate of return on its infrastructure projects if it wants to tap into a limited pool of global capital coveted by regional peers, Mark Ramsey, head of Latin America for Macquarie Capital, said on Friday.

The Australian bank, one of the world’s biggest managers of infrastructure investments, is interested in electricity generation, road, port, airport, railway and real estate projects in Latin America’s biggest country.

May 24, 2013

Latam markets jolt from a Fed exit should be brief

May 24 (Reuters) – Latin America should suffer just a short,
sharp shock to its financial markets when the U.S. Federal
Reserve starts to taper its super easy monetary policy as
investors remain convinced of the region’s solid economic
prospects and are attracted by its high-yielding assets.

Investors are coming around to the idea that when the Fed
begins slowing the money printing presses and buys fewer bonds,
it will be because the policy has succeeded in getting the U.S.
economy to grow in a sustainable way. That growth should buoy
global demand and help sales of Latin America’s key exports.

    • About Krista

      "I write about the Latin American economy from Mexico City, where I moved in late 2010 seeking a break from the euro zone crisis. I had spent six years in Frankfurt covering the European Central Bank. In a previous life, I worked in Australia and wrote about the economy and national politics for local news agency AAP."
      Hometown:
      Melbourne, Australia
      Joined Reuters:
      2004
      Languages:
      English, German, Spanish, Portuguese
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