Weekend Newswire: Latin America

Bolivia and US agree to improve bilateral ties
Bolivian President Evo Morales has called for a complete overhaul of his country’s strained ties with the US. He urged “mutual respect” between the two nations, saying Washington should not interfere in Bolivia’s affairs.


Venezuelan Bonds Sink to Six-Week Low as Chavez Takeovers Fuel `Distrust'
Venezuela’s benchmark bonds fell to a six-week low after President Hugo Chavez announced the government will take over the hot-briquetted iron industry and other metal companies.


Chavez Takes Control of Venezuela's Hot-Briquetted Iron, Steel Industries
Venezuelan President Hugo Chavez announced the government will take over the hot-briquetted iron industry and other metal companies, increasing its control over the nation’s mineral-wealth industries.

Venezuelan Oil Keeps Attracting Bidders in Bets That Chavez Isn't Forever
Chevron Corp. and Total SA are pursuing new Venezuelan oil projects after President Hugo Chavez tore up past agreements, seized assets of contractors and expelled producers that wouldn’t accept new terms.


Cash short Venezuela negotiating loans from Brazil
Venezuelan President Hugo Chavez, whose administration is facing cash shortages as oil revenues plunge, is negotiating loans from Brazil’s development bank to fund infrastructure projects, revealed the Brazilian newspaper Folha de Sao Paulo.


Brazilian Stocks Gain on Signs of Rising Demand, Commodities; Bolsa Rises Brazil’s
Bovespa index climbed, capping a weekly advance, on speculation domestic demand is recovering and as investors bought commodities to hedge against a weakening dollar.


Brazil's Vale Lowers This Year's Planned Investments to $9 Billion From $14 Billion
Cia. Vale do Rio Doce, the world’s biggest iron-ore producer, said falling costs and a stronger dollar allowed it to cut 2009 planned capital spending by 37 percent.


Mexican Billionaire Salinas May Enter California to Boost Hispanic Banking
Banco Azteca, controlled by Mexican billionaire Ricardo Salinas, says the financial crisis offers the bank a chance to enter the U.S. market and lure Hispanic customers.


Pemex Is `Too Optimistic' About Chicontepec Development, Board Member Says
Petroleos Mexicanos, the state-owned oil company, should reconsider its $11.1 billion plan for the Chicontepec field because lower oil prices make the investment less attractive, said newly appointed board member Fluvio Ruiz.

Re-shuffling global assets from North to South – Vale do Rio Doce, Brazilian goes shopping for Rio Tinto's assets

The Ango-Australian mining giant, Rio Tinto Group is selling mining assets in Argentina, Brazil and Canada to Brazilian competitor Vale do Rio Doce for $1.6 billion Rio Tinto is facing tough times as it desperately tried to reduce its $39 billion debt.

Rio Tinto has reportedly already sold over $3 billion of assets. The company said “the latest sales represent a major step towards meeting its goal to reduce debt from $39 billion to $10 billion.

Did a bit of research and Vale do Rio Doce doesn't seem to have much debt. Which is a really good thing for miners right now! With commodity prices as low as they are, servicing debt is a dangerous thing. .

Vale however, because it saved it's penny's during the good times has managed to scoop up two of Rio's prized operations in Argentina and Brazil for pretty good price. Vale do Rio Doce paid $850 million for Rio's major potash operation in Argentina; and in Brazil it paid $750 million for the Corumba iron ore mine.

Citigroup analyst Clarke Wilkins said “the sale highlights good prices for assets can still be achieved in the current market. Indication that the assets are still perceived as viable long term investments even though commodity prices are so low. It may take time for them to recover, but when they do Vale do Rio Doce will make money from this purchase.

Check out what the stock has been doing recently. Good buy? Hmmmm.