Latin Stocks Head for Biggest Weekly Loss in 5 Months; Cemex Shares Fall

(Bloomberg) -- Latin American stocks headed for
their biggest weekly slide in five months after investors sold
riskier assets on concern that higher borrowing costs will curb
earnings and economic growth.

The Morgan Stanley Capital International index of Latin
American shares fell 1 percent to 3712.43 as of 1:28 p.m. New
York time. That brought its loss since July 20 to 7.6 percent.
Monterrey, Mexico-based cement-maker Cemex SAB led the retreat.


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UPDATE 1-TransAlta net profit drops, operating earns jump

(Reuters) - The company said net income in the quarter was C$57.2
million, or 28 Canadian cents a share, for the quarter, down
from C$86.4 million, or 43 Canadian cents a share in the second
quarter 2006.




TransAlta, which runs coal, gas and wind power generating
plants in Canada, the United States and Mexico, said operating
earnings, which exclude most one-time gains and charges, rose
19.5 percent to C$90.5 million, from C$75.7 million in the
second quarter of 2006.


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Calderon, Ebrard Blame Each Other as Mexico City Sewage Mess Seeps Closer

(Bloomberg) -- Summer rains threaten to overload
Mexico City's drainage system and flood Latin America's largest
urban area with sewage, as the president and mayor blame each
other for the predicament.

``We may witness the worst flooding in modern history in
Mexico City,'' President Felipe Calderon said in a speech last
month that Mayor Marcelo Ebrard refused to attend. Calderon said
the water and sewage drainage system ``faces problems more grave
than some authorities have reflected with their actions.''


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Mexican Peso Declines to Six-Week Low Amid Equities Rout, Growth Concern

(Bloomberg) -- Mexico's peso fell to a six-week low
as investors retreated from riskier assets and global stock
markets declined.

The currency also slumped for a third day after the U.S.
said orders for durable goods excluding transportation also
unexpectedly fell 0.5 percent in June, raising concern that a
U.S. slowdown could spill over into Mexico.


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Mexico Bolsa Falls on Growth Concern; America Movil Slips; Petrobras Gains

(Bloomberg) -- Mexican shares fell for a second day on
concern subprime loan losses in the U.S. may signal a further
weakening in the economy that buys 80 percent of Mexican exports
and lead to higher borrowing costs.

Mexico's Bolsa index retreated 286.97, or 0.9 percent, to
31,175.18 as of 3:24 p.m. New York time, led by mobile phone
company America Movil SAB. The Bovespa Index of the most-traded
stocks on the Sao Paulo exchange was little changed.


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Suzano Papel, Cemex, Televisa, Tim and Votorantim: Latin Equity Preview

(Bloomberg) -- The following stocks may make
significant gains or losses in Brazil and Mexico today. Symbols
are in parentheses after the company name, and stock prices are
from the last session.

In Brazil, preferred shares are the most commonly traded
class of stock.


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Hog Futures Decline on Concern U.S. Exports to Weaken; Cattle Futures Fall

(Bloomberg) -- Hog futures fell in Chicago for the
first time in three sessions as traders focused more on
decreasing U.S. pork exports to Mexico and Russia and less on the
prospect of rising Chinese demand. Cattle prices also fell.

Mexico, the second-largest buyer of U.S. pork behind Japan,
has imported 30 percent less than a year earlier, the U.S.
Department of Agriculture said last week. Exports to Russia, the
fifth-largest buyer, are 25 percent behind last year's pace, the
USDA said. The price of pork rose 7.1 percent in the past two
days on speculation demand from China would rise.


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Mexico's Central Bank Halts Dollar Auctions for the First Time Since 2003

(Bloomberg) -- Mexico's peso rose to the highest
against the dollar in almost a month amid a surge in the price of
oil, the biggest source of government revenue.

``Oil has a big effect on the peso,'' said Eduardo Perez,
who helps oversee $5 billion in assets in Mexico City at Grupo
Nacional Provincial SA, the country's biggest insurance company.
``The incoming flows prop up the currency.''


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Bank of Mexico Won't Sell Dollars in Next 3 Months After Outflow, UBS Says

(Bloomberg) -- Banco de Mexico won't sell dollars
from August through October because of an outflow of
international reserves, UBS AG said in a report.

Banco de Mexico won't sell dollars in the next three months
for the first time since the bank began auctioning dollars on a
daily basis in 2003 in a bid to reduce the cost of holding
reserves, said Guillermo Aboumrad, a senior economist at UBS's
unit in Mexico City.


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Mexico's Bolsa Falls, Led by Walmex, as Earnings Slow; Usiminas, CSN Slip

(Bloomberg) -- Mexico's Bolsa index fell for a second
day after Wal-Mart de Mexico SA, the biggest retailer in Latin
America, reported lower-than-expected earnings.

The Bolsa index slid 212.10, or 0.7 percent, to 31,876.15 as
of 12:20 p.m. New York time. Brazil's main stock index fell for the
first time in three days.


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Chile's Peso Falls Most in a Week on U.S. Housing Weakness, Export Outlook

(Bloomberg) -- Chile's peso declined the most in a
week on speculation U.S. housing market weakness will slow Latin
American growth.

The peso fell from a seven-week high after Standard &
Poor's said it may cut the credit rating on $12 billion of bonds
backed by U.S. subprime mortgages. Currencies and stocks in
Brazil and Mexico also fell.


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Mexican Peso Falls Most in Two Weeks on Reduced Risk Demand; Bonds Decline

(Bloomberg) -- Mexico's peso fell the most in two
weeks as rising interest rates in developed countries trimmed
demand for riskier assets.

``There's an increase in risk aversion,'' said Francisco
Diez, director of emerging-markets trading in Toronto at RBC
Capital Markets. ``This is affecting all emerging-market
currencies, including the peso.''


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UPDATE 1-Mexico consumer confidence index falls in June

(Reuters) - The index showed fewer people felt their own family's
financial well-being had improved in the past year than they
did in May, but more expected it to get better a year into the
future.




Also, fewer people saw Mexico's economy in a healthier
state a year into the future and fewer considered it improved
from a year earlier.


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America Movil, Grupo Mexico and Wal-Mart de Mexico: Mexican Equity Mover

(Bloomberg) -- Mexico's main stock index was little
changed as retailer Wal-Mart de Mexico SAB fell and cement-maker
Cemex SAB rose.

The Bolsa index gained 5.84, or less than 0.1 percent, to
31,301.85 at 10:03 a.m. New York time.


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Mexico's Peso Bonds Fall as Central Bankers Maintain `Restrictive Bias'

(Bloomberg) -- Mexico's peso-denominated bonds fell
after central bankers kept their ``restrictive bias'' at a
monetary policy meeting, damping expectations they will lower
interest rates this year.

The government's benchmark 20-year securities led declines
as policy makers expressed concern about inflation, saying higher
global grain prices may trigger a pickup in consumer price rises
in Mexico. Central bankers voted today to keep the overnight
lending rate at a one-year high of 7.25 percent.


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Mexico tax dodgers one step ahead of government

(Reuters) - Hoping to wean Mexico off oil dollars and generate cash for
infrastructure like hospitals, roads and schools, President
Felipe Calderon gave lawmakers a long-awaited bill on Wednesday
aimed at bumping up the country's miserable tax take.




Proposals include a plan to levy a tax of 2 percent on
monthly bank deposits of cash larger than a sum equivalent to
just under $2,000 -- a measure aimed at small businesses and
self-employed workers who keep transactions in cash.


Read more at Reuters.com Bonds News

Mexican 10-Year Peso Bonds Climb to Two-Week High on Tax Bill Prospects

(Bloomberg) -- Mexico's 10-year peso-denominated
bonds rose, pushing yields to the lowest in two weeks, on
speculation President Felipe Calderon will push his plan to raise
tax collection through congress.

Yields on the 10-year maturity fell for a fourth day and the
peso strengthened as Calderon said he'll unveil his tax overhaul
proposal in the next few days.


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America Movil, Cemex, Grupo Mexico, IXE and Invex: Mexican Equity Movers

(Bloomberg) -- Mexico's main stock index rose for a
fourth day, led by shares of America Movil SAB, Latin America's
largest mobile-phone company.

The Bolsa index gained 132.13, or 0.4 percent, to 32,261.10 at
10:15 a.m. New York time, after setting a record June 15.


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Brazilian Stocks Surge to Weekly Gain on Rate Cuts; America Movil Advances

(Bloomberg) -- Brazil's main stock index rose for a
third day, heading for the biggest weekly gain in three months, on
speculation that faster interest rate cuts by the central bank will
lead to increased company profits and spur investment in stocks.

The Bovespa Index of the most-traded stocks on the Sao Paulo
exchange gained 869.33, or 1.6 percent, to 54,582.22 as of 1:18
p.m. New York time, led by Petroleo Brasileiro SA. The weekly gain
of 4.3 percent was the steepest since March 23. Mexico's Bolsa
index rose 0.7 percent to 32,341.09, eclipsing a June 5 record and
heading for a 2.8 percent weekly gain.


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Mexican Peso, Bonds Advance on Expectations of Calderon Tax Collection Law

(Bloomberg) -- Mexican local-currency bonds and the
peso rose on expectations President Felipe Calderon will soon
send to congress his plan for boosting tax collections.

Agustin Carstens, Mexico's Minister of Finance, met with
opposition lawmakers this week to confirm their support for
Calderon's tax plan, El Universal daily reported today citing a
member of the finance committee in the lower house. The plan
will be submitted in coming days, according to the Mexico City
newspaper.


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