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Good and happy Thursday! The Qatar 2022 World Cup earned its place on the agenda this week. Who would have thought that, in the first days, we would already have Germany and Argentina with a chance of being left out this weekend. Developing history.
The other story that got on the agenda without making much noise is that of the Chilean peso. After several relatively stable weeks, it became volatile again following alarming current-account deficit figures. Bloomberg says that, looking at the derivatives market, traders are already condemning the Chilean peso to a bad 2023: the record current account deficit, combined with the pace of rate cuts priced in by the swaps market, makes it inevitable. Analysts estimate that Chile’s central bank will lead the world in cutting rates next year.
Before we begin with what summons us, I want to invite you to share or join El Semanal, and El Semanal Exprés, so that our community continues to grow. Subscribe to or share this newsletter.
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1- RECALCULATING: ENEL BETS ON CHILE BUT LEAVES ARGENTINA AND PERU
Chile will be one of six markets Enel will focus on as part of a massive global restructuring, including the exit of Argentina and Peru, among others.
What happened?. As part of the new business strategy, it will sell $23 billion in assets to reduce its debt, accelerate the decarbonization of its generation business and focus on sustainable electrification. This year in Chile it sold its transmission business for US$ 1,300 million. Our country generates about 4% of the company’s operating profits and it is from where Enel operates the regional business.
In addition to Chile, in Latin America it will only maintain a presence in Brazil and Colombia. Other markets in which it will retain a strong presence are Italy, the United States and Spain. Enel’s departure from Argentina joins that of 22 other multinationals that have left the market, including Chile’s Falabella and Latam Airlines.
If you want to read the full analysis of Enel’s plans for Chile and the region, subscribe to El Mostrador Semanal and join our community.
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2- GROUPS LUKSIC, MATTE AND ANGELINI TAKE TICKETS TO BUENOS AIRES
Andrónico Luksic’s right-hand man will lead a large delegation of Chilean businessmen to Argentina next week. This is Rodrigo Hinzpeter, prosecutor of Quiñenco, director of CCU and former Minister of the Interior of Piñera I. The delegation also includes senior executives and directors of Cencosud (Paulmann), Arauco (Angelini Group), CMPC (Matte Group) and Said Group (Parque Arauco, Andina, among others). They are the largest and most influential economic groups in Chile and all with huge investments in Argentina.
Why it’s important. Chilean companies are among the five largest foreign investors in Argentina and generate more than 175,000 direct jobs. As an example, the Luksic Group operates in Argentina with CCU, has agricultural and shipping businesses. The Mattes are the main pulp producers along with Arauco; and Embotelladora Andina dominates the Coca Cola market, among others.
Another factor: lithium. Chile is currently the second largest producer and Argentina is the fourth, far behind.
If you want to read the full review, subscribe to El Mostrador Semanal and join our community.
A message from VanTrust Capital
For more information click on the image
Vantrust AGF adds first woman to its board
Lili Manns, a commercial engineer from the Pontificia Universidad Católica de Chile, with a major in Economics, is the new director of Vantrust AGF (General Fund Administrator). The professional, an expert in impact investing, is the first woman to join the board of this company and hopes to be “the first of many that we contribute talent.”
Her main purpose in this position is to bring clients closer to public and private funds that are impact investments, which intentionally seek to create a measurable positive effect of social conditions such as gender equality and / or environmental as the contribution to decarbonize the planet, and at the same time have financial returns.
This addition is due to one of Vantrust Capital’s missions, which is to drive impact investments within the policies of the United States.e the company and product portfolio. They were the first company to sign the Green Deal, are subscribed to the fulfillment of the UN SDGs and promote investment in projects that contemplate the fulfillment of the ESG.
Full information can be found at this link or by clicking on the image.
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3- THE TABLE OF EL MOSTRADOR: THE HOUSING CRISIS
Mario Álvarez and the social housing crisis: “The Government’s plan is at risk and it is urgent to streamline processes and management”
The president of the Association of Social Housing Developers (ADVS) was this week’s guest at La Mesa de El Mostrador and, in the interview, was clear in warning that the promise to build 260,000 social housing and invest US $ 13,000 million in 4 years is under threat.
He revealed that the association offered the Minister of Housing, Carlos Montes, a package of measures to reverse the crisis in the construction of subsidy housing. “Under current conditions, the Housing Emergency Plan is at a critical point,” he said.
And he added that there are simple measures that can be implemented to speed up the approval of social projects and decongest critical knots. Among them, Álvarez pointed out, it is key to eliminate the cut to the Special Credit for Construction Companies.
To view the full interview, click on this link or the image.
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4- NO CLEATS OR TIES, EXPRESS
– The unknown role of a Chilean at the heart of the FTX crypto scandal. This is Tristan Yver, who until August of this year was the director of strategy of the now bankrupt company and is considered a legend in the world of cryptocurrencies. Also, part of the iron circle of founder Sam Bankman-Fried. In addition, he was part of the Serum team, which several critics claim was one of the tokens that FTX used to manipulate its balance.
“A substantial sum of FTX’s assets were stolen or we have not yet been able to find them,” said the attorney representing the firm in the bankruptcy process.
If you want to read more about the role of this Chilean, subscribe to El Mostrador Semanal and join our community.
– The bad vibes between La Moneda and Andrés Velasco would have cost Chile the presidency of the IDB. Sources who know in depth the process that culminated in the election of Brazilian Ilan Goldfajn as the new president of the entity, with more than 80% of the support, affirm that if President Gabriel Boric had nominated the former Minister of Finance of the first Government of Michelle Bachelet, he would have been the winner of the election. Velasco had the support of the United States, Canada, the European Union and several other governments in the region that, in total, totaled more than 50% (the US only has 30% of the vote). Goldfajn was not the first choice in the White House and they ended up supporting him by discarding.
If you want to read the full review, subscribe to El Mostrador Semanal and join our community.
– Three women join the Circle of Honor of the Faculty of Economics and Business of the University of Chile. They are Gabriela Salvador, the commercial engineer and CEO of VanTrust Capital who, in 2021, was recognized as one of the 100 women leaders in the world by the Group of 100 Global Women Leaders (G100); Marcela Bravo, general manager of Acción Empresas; and Olga Fuentes, who served as Mayor of Regulation and head of the Studies Division of the Superintendency of Pensions.
The recognitions were made on November 17. The winners were highlighted for their great work and professional career in front of the entire community. The other professionals awarded corresponding to the FEN 2021 Circle of Honor were Sebastián Arana, Luis Flores and Claudio Soto.
– The derivatives market takes a giant step forward in terms of transparency. This Wednesday the president of the Central Bank, Rosanna Costa, launched the new Integrated Derivatives Information System (SIID-TR). The platform will increase market transparency, promote financial stability and facilitate supervision by regulators.
How it will work. In the system, banks, institutional investors and other residents who carry out derivatives transactions will report their transactions in accordance with international best practices and recommendations. The specially designed web portal will have a daily record of participants, the amounts traded and in force, and the contractual terms of the operations carried out.
Chile’s Central Bank will be the most aggressive in the world when it comes to cutting interest rates in 2023. A Bloomberg analysis looking at the swaps, derivatives and futures market shows that the market has internalized cuts of more than 5 percentage points over the next 12 months. The aggressive policy of increases is Inflation has been falling for three months, with the economy on the verge of recession.
If you want to read the full review, subscribe to El Mostrador Semanal and join our community.
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5- EL SEMANAL INVITES YOU TO A NEW WORKSHOP ON FINANCIAL INCLUSION
We invite you to the second meeting of a new series of El Semanal Workshops on financial inclusion as a tool to combat inequality. The focus of next Wednesday’s workshop will be banking as an agent of change.
We will talk about open finance, technological irruption, competition and the paradigm shift in data use and ownership.
The guests are Ignacio Briones, former Minister of Finance, and Luis Opazo, general manager of the Association of Banks.
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