32.72 +0.05 (0.17%)
After hours: 4:10PM EST
|Bid||32.54 x 100|
|Ask||34.33 x 1000|
|Day's Range||32.63 - 32.84|
|52 Week Range||26.43 - 36.46|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.49%|
International stocks can be intimidating for many investors. When picking a country to focus on that’s outside the U.S., it often is hard to grasp how the local economy works, or identify the very best international stocks in the region that are worth your money.
The International Swaps and Derivatives Association ruled Thursday that Venezuela and its state oil company defaulted on some debt, which will trigger payment on credit default swaps. With late or non-payment ...
Venezuela's bonds were paying yields in excess of 30% as the odds of default mounted, and investors were plucking what they thought would survive for their portfolios. Prices for short and long durations could converge, however, after S&P Global Ratings and Fitch Ratings late Monday declared the cash-starved Venezuelan government is in selective default, based on past-due payments. The announcements came after the Venezuelan government made a last-ditch effort to renegotiate in meetings with bondholders in Caracas Monday.
S&P Global Ratings downgraded Venezuela's foreign currency sovereign credit rating late Monday beyond junk to "selective default" after it failed to make two payments within a grace period. On Monday, bondholders met in Caracas at the invitation of President Nicolas Maduro to discuss restructuring debt issued by the the government and state-owned oil company Petróleos de Venezuela. Also late Monday, Fitch Ratings downgraded long-term foreign and local currency ratings on state-owned oil company Petroleos de Venezuela (PDVSA) to restricted default, and said bondholders' recovery of their investment may be at the low end of the anticipated 31% to 50% range.
The Venezuelan government wants bondholders to come to Caracas Monday to restructure debt as it scrounges for cash. Venezuela seems to have avoided a default this week after Russia said Wednesday that it would restructure $3 billion in loans to Caracas to free up money for payments that are past due.
If Venezuela does not make a $1.12 billion payment that was due Nov. 2 tonight, Tuesday, default may finally happen. "Coupled with the previously missed payments on outstanding sovereign bonds that are currently within their 30-day grace periods, a default event appears highly probable," Fitch Ratings said in a downgrade of Venezuela's Corporacion Electrica Nacional Tuesday. The International Swaps and Derivatives Association will be asked to rule if credit default swaps (CDS), a form of insurance when debt payments aren't made, have been triggered.
It may be time for Brazil’s currency to strengthen and as fears mount for the Mexican peso. The Brazilian real (BRL) has been under pressure, but that could change as the economy improves and investors return. At the same time, the Mexican peso (MXN) could weaken as North American Free Trade Agreement trade talks resume, says emerging markets foreign currency strategist Kiran Kowshik with UniCredit Bank in London.
Fitch Ratings said Venezuela's debt default is probable late Friday, and it downgraded the country's long-term foreign currency debt rating deeper into distressed territory. UPDATED: S&P Global Ratings took similar actions a few hours later Friday in reducing its rating on Venezuela's long-term, foreign-currency sovereign credit to CC from CCC minus. UPDATED: S&P sees a "one-in-two chance that Venezuela defaults within the next three months." Until now, the government had said it intended to make payments.
There's doublespeak from Venezuela on debt default as the nation scrambles to make a payment. President Nicolas Maduro said Thursday that the state-run oil producer Petroleos de Venezuela or Pdvsa would make a final $1.1 billion bond payment Friday, but he also issued another order regarding the country's roughly $120 billion in foreign debt, according to the Associated Press: "I decree a refinancing and a restructuring of all external debt and all of Venezuela's payments," Maduro said in a nationally broadcast address Thursday. Siobhan Morden, head of Latin America Fixed Income Strategy at Nomura Securities, writes that investors should not rule out an accidental default, though she thinks the government can probably make a past-due Electricidad de Caracas (Elecar) interest payment in a grace period that expires Nov. 9.
The final Markit Brazil Manufacturing PMI (Purchasing Managers’ Index) stood at 50.9 in September 2017. It remained unchanged compared to August 2017.
Venezuela regional elections Sunday defied expectations, with a majority of governor seats going to the government party with reports of tactics designed to discourage opposition voters. There were 23 governor seats up for reelection, and 17 went to the party of President Nicolas Maduro, the United Socialist Party of Venezuela or PSUV. Nomura's head of Latin America fixed income strategy, Siobhan Morden, writes: " ... the PSUV won 17 of the governor seats with only 5 to the opposition and 1 still undetermined (Bolivar).
The number of oil rigs in Venezuela fell to a new 15-year low in September as the country’s indebted government and economy struggle to invest. Only 44 oil rigs are operating in Venezuela, half the number of rigs at work in 2013, according to the latest Baker Hughes data. Venezuela is a member of the Organization of Petroleum Exporting Countries (OPEC), which on Tuesday pressured U.S. oil producers -- and hedge funds -- to meet with OPEC in its efforts to support oil prices.
With the risk that Venezuela's cash-strapped government could default on debt payments, and U.S. government sanctions restricting bond investment in Venezuela, Nomura Securities offered advice Wednesday on what government and state oil company bonds remain attractive. Bonds issued by the Venezuelan government and its oil producer Petroleos de Venezuela, or Pdvsa, are sporting yields of between 15% and 30% depending maturity date. Nomura favors "defensive" bonds: sovereigns maturing in 2027 and 2034 -- those maturities are the only Venezuela holdings in the ETF, and account for 0.18% of holdings -- and Nomura sees appeal in low-cash-price PdVSA bonds maturing in 2024, 2026, 2027, 2037.
Mexico’s central bank left the benchmark interest rate unchanged Thursday, as everyone expected. Now at 7%, interest rates are at a multi-year high after a string of rate hikes that policy makers say is slowing the pace of inflation. In our view, the message had a slightly dovish undertone as Banxico mentioned that credit has slowed and that the previous rate hikes are likely to impact the economy in the future.
How badly will the two recent earthquakes hit Mexico's economy. Benito Berber, the senior Latin America strategist at Normura, lowered his 2017 GDP growth forecast by 0.4%, claiming that the quakes, which have left hundreds dead, could cost between $2 billion and $4 billion.
With many believing that inflation could begin to drop, Mexico’s central bank is expected to leave interest rates unchanged when it meets on Thursday. Board members have stressed that upside inflation surprises are temporary, underlining the one-off influence from a jump in fresh food items. Mexico’s central bank hiked interest rates seven consecutive times until July, when it opted to leave rates unchanged.
The Brazilian economy (EWZ) (BRZU) has faced a series of problems such as lower economic growth, higher inflation, political uncertainty, and higher unemployment.
North Korea says President Trump’s latest comments about the country are a declaration of war and election results in Germany have sparked renewed fears that hurt Latin American currencies. Emerging markets ...
Venezuela may be running on fumes and U.S. sanctions may hurt, but the government coughed up $185 million to pay the coupon on a bond maturing in 2027, according to several reports. It was five days late, and many investors fear that Venezuela could default on its debts. Of course, it's not clear if the government's future tense meant that it would have the resources today, or until the end of time.
Eurasia Group says increased financial strain in Venezuela caused by latest round of U.S. sanctions could result in the restart of dialogue between the government and the opposition. Citing recent U.S. sanctions that limit trade in Venezuelan debt, President Donald Trump , at the United Nations Tuesday, condemned Venezuela President Nicolas Maduro's government for imposing socialism and circumventing democratic processes. Eurasia Group analysts Risa Grais-Targow and Agata Ciesielska expect dialogue to resume between the Venezuelan government and opposition, with international pressure likely to result in more pronounced financial strain for the already-struggling nation.
U.S. President Donald Trump threatened North Korea with destruction, said the Iran nuclear deal was a bad one, railed against Venezuela's oppressive economic and social controls, and scolded Cuba in a speech Tuesday, his first before the United Nations. The SPDR S&P 500 ETF Trust (SPY) was up fractionally and the iShares MSCI Emerging Markets exchange-traded fund (EEM) was down 0.2% in recent trading. The Herzfeld Caribbean Basin Fund (CUBA), a closed-end play on the potential opening of Cuba's economy, was flat to lower in illiquid trading.
Brazil's government controlled oil producer and refiner, Petroleo Brasileiro or Petrobras (PBR) announced Monday that it will issue up to $2 billion in fresh debt in September to retire older issues. As Petrobras has in the past, the energy giant is accepting older notes in exchange for new notes in an attempts to refinance portions of its massive debt burden. From Reuters: Petrobras "will issue $1 billion each of the new secured bonds maturing in 2025 and 2028, according to a Monday securities filing." Petrobras shares were flat in opening trading. The international Brent price of oil was off by 0.7% in recent trading to $55 per barrel.
According to a report by Markit Economics, the final Brazil manufacturing PMI (purchasing managers’ index) rose to 50.9 in August 2017 as compared to 50 in July.
China imported 390,000 metric tons of unwrought copper and copper products in August 2017—compared to 350,000 metric tons in August 2016.