Review: Latin America needs more Uribes 18 Jan 2013 Former Colombian President Alvaro Uribe’s book “No Lost Causes” may be self-serving. But it shows how he helped turn war-torn Colombia from near-failed state into an investment destination. Uribe’s security gains are frail, but his successes dwarf those of his leftist peers.
Latam can rely on masses for next phase of growth 31 Dec 2012 A few key people like the world’s richest man and showy political leaders have epitomized the region for years by spearheading the commodity-led, export economies. In 2013, a burgeoning middle class, helped by low interest rates, will make a mark powering Latin America’s future.
Colombia’s land reform talks have handy template 19 Nov 2012 Land is the first order of business for the government and FARC rebels. Getting past ideas of communal ownership and agreeing on restitution or redistribution is crucial. As Hernando de Soto showed in neighboring Peru, solid property titles can be useful fuel for economic growth.
Colombia brokerage fail more MF Global than Lehman 19 Nov 2012 Interbolsa’s collapse evokes elements of both Wall Street firms. But the demise of Colombia’s largest brokerage is merely painful like MF Global’s, not systemic like Lehman’s. At least Colombia’s regulators have an excuse: they’re toothless until a firm fails. That has to change.
Colombian stock market dominance up for grabs 5 Nov 2012 The government’s seizure of Bogota’s top broker leaves Latin America’s hottest securities market without a clear leader. But Interbolsa’s failure may highlight Colombia’s financial and regulatory charms, and make way for new players with ambitions of regional dominance.
Chilean lender gets tasty-looking Colombian rollup 10 Oct 2012 CorpGroup is building on its purchase of Santander’s Colombian business with a $1.3 bln offer for Helm Bank, probably the last bank of any size available in the hot market. Though the headline price is no steal at 1.7 times book value, possible synergies make it look a bargain.
Mexico’s $10 bln cement giant lightens its load 8 Oct 2012 Though expansion weighed Cemex down with debt and losses, the U.S. housing recovery, eager bond buyers and a planned Colombia IPO are now paving the road to recovery. The investment thesis, however, is less than concrete. Cemex is richly valued and dividends still look distant.
Peace with rebels would solidify Colombia’s gains 28 Aug 2012 President Santos may start talks with FARC guerillas. Thanks to improved security, Colombia has already seen what amounts to a peace dividend. Still, lower military costs would further improve its finances, and coaxing fighters out of the jungle could boost economic confidence.
Latam’s new oil king dons large and heavy crown 4 Jun 2012 Colombia’s Ecopetrol is jockeying to surpass Brazil’s Petrobras as the region’s biggest oil producer by market value. Solid management has lured billions in capital away from rivals in meddling nearby states. But Ecopetrol may struggle to live up to the high hopes for its reign.
Oil majors can only admire Colombia’s titan 1 May 2012 Ecopetrol may not be well known outside Latin America. But the state-controlled company just posted an enviable 50 pct EBITDA margin. At $135 bln, it’s now worth as much as BP. Replacing reserves won’t be easy. But such a well-run firm looks like the best oil play in the region.
Turnaround earns Colombia safe haven status 19 Jan 2012 Its murder rate last year, though still high, was the lowest since 1984. For investors, Colombia enjoyed strong expansion and record foreign investment. With order returning, wages low and resources abundant, the country has near bullet-proof potential for rapid growth.
Latin America gets closer even as Europe cracks 8 Dec 2011 Cross-border deals among South American companies, like Chilean CorpBanca’s purchase of Santander Colombia, set a new record in 2011. A single Latin currency seems remote given the euro’s woes. But as the region’s private sector consolidates, it can’t be ruled out for ever.
New U.S. trade deals are political, economic wins 13 Oct 2011 After an overlong hiatus, the passage of laws fostering commerce with Korea, Colombia and Panama is a welcome boon for free trade. While bilateral deals are only modest job-creators, they deepen economic links, enhance efficiency and build friendships. Next up? Indonesia.
Pemex scandal highlights need for restructuring 1 Aug 2011 Long treated as a cash machine by the Mexican government, the national oil group also now appears to have been milked by criminal gangs to the tune of $600 mln just last year. Though imperfect, Latin rivals like Petrobras and Ecopetrol offer models Mexico should emulate.