Chile’s lithium grab puts foreign miners on notice 21 Apr 2023 President Gabriel Boric will force producers of the EV battery metal to be junior joint-venture partners to the state. Foreign miners expected a tax hike, and global lithium supplies are diversifying. But Boric’s gambit means copper players like BHP will wonder if they’re next.
Guest view: Consider a debt for vaccines program 9 Mar 2021 Such plans may help reduce currency mismatches in jab distribution, reduce the need for “new money” and avoid overloading balance sheets with unsustainable pre-existing debt. Epidemiologist Cristina Valencia and banker William Rhodes argue for piloting the idea in Latin America.
Latin America puts new spin on airline distress 26 May 2020 The region’s largest carrier, Latam Airlines, has filed for bankruptcy protection weeks after rival Avianca did. It can’t bank on government bailouts and has hefty dollar liabilities, amplifying the shock of having to ground planes. The future looks a lot smaller.
Corona Capital: Latin America and Covid-19 8 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: Six Latin American countries want a $15 billion loan to help fight Covid-19. "There's no harm in trying" says Peru's president, a sad sentiment reflecting the global shortage of needed equipment.
LatAm leaders will be trapped in vicious cycle 26 Dec 2019 Protests across the region will make growth even lousier in 2020, which in turn will make people even angrier. The presidents of Chile and Ecuador are most exposed. Expect them to water down reforms in a bid to stay in office. Whether it works or not, their economies will suffer.
Chile’s canceled summits are a climate allegory 30 Oct 2019 The country has pulled out of hosting the U.N.’s annual anti-global-warming confab and the APEC summit following deadly protests over inequality. It exemplifies the dilemmas governments and companies face in trying to tackle long-term problems when there are also immediate needs.
Macri’s likely defeat a warning to LatAm reformers 25 Oct 2019 Argentines are expected to oust would-be reformer Mauricio Macri in Sunday’s elections, which follow weeks of violent protests across the region. In the post-commodity-boom era, Latin American reformers need to find a new identity that is neither leftist nor too austere.
Viewsroom: WeWork’s future may lie in China’s past 24 Oct 2019 Beijing-based Kr Space switched from renting out space held on long-term leases to selling services after the shared-office market crashed. Following suit may help WeWork stem losses. Also: climate change and Canada’s election. Plus: the gloomy IMF and unrest in Latin America.
Chile protests give investors a rude awakening 21 Oct 2019 Latin America’s golden child erupted in violence this past weekend over a subway-fare hike. Its economy seems strong for an emerging market, but the unrest comes amid slowing growth, a weakened currency and a feeble copper market. Bondholders aren’t pricing in the risks.
Chinese battery drive hits amber light in Chile 12 Oct 2018 To clinch a $4.1 bln stake in lithium giant SQM, China's Tianqi has agreed with antitrust officials to limit access to sensitive information. A hostile shareholder may yet thwart the deal but as Beijing's clout in the industry grows, such acquisitions will only get tougher.
Antofagasta shows markets’ low bar to trade panic 14 Aug 2018 Shares in the London-listed Chilean copper miner slumped after it said U.S.-China trade tensions may hit demand for the metal. Antofagasta had a weak first half, but its guidance is unchanged. Macro jitters mean investors are unwilling to give companies the benefit of the doubt.
China’s Chile deal highlights a battery dilemma 16 May 2018 Tianqi Lithium is set to buy a stake in the $14.9 bln SQM. That suggests worries about excessive Beijing control over the key battery ingredient’s supply have eased. Still, the People's Republic would raise its share of output, hampering resource-rich nations’ scope to push back.
China’s lithium trouble in Chile hints at more 15 Mar 2018 A government agency wants to block Tianqi Lithium's bid for a stake in $13 bln rival SQM, arguing the market is too concentrated. China seldom gets pushback in resources M&A. Beijing can expect more potholes as it tightens its grip on ingredients for electric vehicle batteries.
Chile can set copper behemoth on market trajectory 8 Mar 2018 Codelco needs cash - and plenty of it. Attempting to privatise the world’s biggest copper producer would be politically toxic. Still, there is plenty Chile's incoming President Sebastian Piñera can do, starting with handing the group more control over its finances.
Abertis rethink would avoid bidder roadkill 8 Mar 2018 Rival bidders Atlantia and ACS are mulling a breakup of the Spanish group, reports say. It would nix the idea of a European champion. But if Atlantia forgets Spain to focus on Abertis’ other assets, it would be politically easier – and avoid a pricey bidding war.
Romer exit flags World Bank’s human capital limits 25 Jan 2018 The academic known for his work on economic growth is leaving the bank after just 15 months. The attempt to shake up a staid institution fits his theories’ emphasis on new ideas. But his brash manner shows how organisations can be less than the sum of their inputs.
Chile reinforces Latin American pro-business pivot 18 Dec 2017 Billionaire Sebastian Piñera won the copper-rich nation's presidential election with a stronger showing than expected. That will lend succor to like-minded leaders in Argentina, Brazil and Peru for whom fiscal discipline is proving a long slog and graft allegations a danger.
Latam’s turn from populism will be put to the test 15 Dec 2017 Demagogues of right and left will test the region's recent embrace of pro-business pragmatism in 2018. Presidential elections in Mexico and Brazil will feature firebrands keen to exploit voter anger at corrupt elites and lawlessness. The center, if it holds, will emerge stronger.
Rio Tinto distracted by shiny new thing 22 Nov 2017 The mining giant is mulling a stake in $15 bln lithium producer SQM. Rechargeable-battery fever has helped lift the Chilean company's valuation to a tech-like multiple. Deals will return with industry growth, but after past mistakes including Alcan, Rio is looking late again.
Review: The next fight for Latin America’s soul 17 Nov 2017 Dictators and demagogues have come and gone; progress in the region has been impressive. Still, rule of law and effective institutions still lack, Michael Reid writes in "Forgotten Continent." That makes the next steps toward prosperity harder.