Peru: Saturday News Roundup – June 9

Morning News RoundupLima Stock Exchange (BVL) Recap

(LIP-jl) — Lima’s stock exchange (Bolsa de Valores – BVL) closed the week’s trading session by registering its third consecutive loss . The BVL closed Friday’s trading session at 20,789 points, a decrease of 0.43% from Thursday’s close. The Selective Index -ISEL (index that groups the 15 leading stocks), closed at 36.301 units, a decrease of 0.37%. Some of yesterday’s most active stocks included: Minera Andina de Exploraciones comunes (-10.87%), Editora El Comercio de inversión (-7.14%), Corporación Cervesur comunes (-5.56%), Manufactura de Metales Récord de inversión (-4.26%) and Southern Copper comunes (-4.03%).

Peru winger Vargas draws interest AS Roma, Juventus, Liverpool

Calcio Catania winger Juan Manuel Vargas has been offered €4million by Italian giants AS Roma, who have made a move for the versatile Peruvian free-kick specialist, with the Peruvian international star also being tracked by Italian team Juventus, as well as Premiership side Liverpool FC and Portsmouth. Italian Serie A side Catania recently secured a four-year deal with Vargas, who has been noted for his ability to not only dribble the ball magnificently, but also for his prowess in attack and his free-kick ability. But with the recent news that a big money move to another major club has emerged, Catania President Antonio Pulvirenti indicated that the financial incentive for the club may mean that a summer move is imminent. “We have had contact from Roma for Vargas,” said Pulvirenti. “We would like him to stay, but it doesn’t necessarily mean that we will be able to keep him. It is very difficult to keep him because of the offers that we have received, after having only paid €2.5million." For his part, Vargas is remaining composed and said of the constant speculation of a move: “I am not losing any sleep over this.” In August 2006, after a recommendation from Peruvian Newcastle winger Nolberto Solano to Portsmouth manager Harry Redknapp, Vargas received an offer of $2 million from Pompey after the new owner Alexandre Gaydamak wanted to bring him to Fratton Park, claiming that with his investment he wanted the club to be: "The next Chelsea F.C." Despite Vargas training with Harry Redknapp’s Portsmouth for a few weeks, the offer fell through for various reasons and he signed a four year deal with Italian Serie A side Catania instead. But now the recent interest may bring Vargas to reconsider his situation, but the 23-year-old says that he isn’t aware of any communicatio0n from other clubs and that he is expecting to stay with the Serie A side for the 2007/08 season. Vargas, speaking to Peruvian sports daily Libero, said: “I do not know anything about the apparent interest from Roma. “At the moment I am happy with Catania, and I will wait to see what the future holds.” Liverpool manager Rafa Benitez is also thought to be interested in bringing Vargas to the English Premiership, but face tough competition from both Roma and Juventus.(Premiereshiplatest.com)

Latin America fights human trafficking

The International Organization for Migration (IOM) announced that Argentina, Bolivia, Brazil, Chile, Paraguay and Peru agreed to set up a regional network to combat human trafficking. A press note circulated in the UN headquarters reports that this institution would boost all States in the region to coordinate border activities to strengthen the fight against human trafficking. A meeting in Lima was held to exchange experience and learn of advances and difficulties in these issues, and participants agreed to "share information, improve border coordination and set up protocols of reintegration and return victims, among other issues," IOM reported. The meeting, the note adds, dealt with the situation of Bolivia, considered a country of origin, transit and destination of human trafficking with a predominance of sexual and labor trafficking. The IOM report further adds that many Bolivians are taken to Argentina to work in textile factories under a pseudo-slavery situation that includes retention of documents and deprivation of freedom. "Bolivian authorities recognized the difficulty to control these flows across the borders," the UN institution expressed. (Prensa Latina)

Peru’s GDP to grow 7.2 percent in 2007

Peru’s economy will expand more than previously expected this year, led by growth in manufacturing and retailing, central bank President Julio Velarde said. Gross domestic product will expand 7.2 percent, up from a previous forecast of 6.8 percent, Velarde said at a Lima news conference. Peru’s GDP in 2006 grew 7.9 percent, with inflation of 1.14 percent. Construction, manufacturing and retail sales will all grow at least 8 percent this year, offsetting slowing export growth as metals prices decline, Velarde said. Peru, the world’s third- largest copper producer and fifth in gold, will see exports rise 11 percent to $26.4 billion this year, compared with 36 percent growth in 2006, according to the central bank. "The increase in consumer demand is compensating for slower export growth,” Velarde said. "Rising private and public investment is creating more jobs, which is spurring spending and demand for consumer loans.” Peru’s annual inflation rate, the lowest in the region, will be about 2 percent in 2007, while the trade surplus will narrow to $8.4 billion from $8.8 billion last year, the bank’s president said.
Velarde also said the bank plans to decrease dollar purchases after buying a record $4.5 billion so far this year. Peru’s sol gained 0.1 percent to 3.1725 soles at 2:30 p.m. The sol has gained 0.6 percent so far this year. (By Alex Emery –Bloomberg.com)

APN greenlights land use for US$3.8bn LNG project – Peru

Peru’s national port authority APN has authorized the Peru LNG consortium to use an area in Lima department to build a maritime terminal for its US$3.8bn LNG export project. The area takes up 209,041m2 in the district of San Vicente de Cañete in Cañete province, the country’s official gazette reported. The terminal and associated works will take 3.6 years to complete, said the report, adding APN authorized the consortium to use the area for 60 years. The project aims to convert Camisea gas from block 56 to liquefied natural gas (LNG) for export, primarily aimed toward US and Mexican markets. The project also entails a gas processing plant in Amazonian town Malvinas, LPG/condensate separation facilities in Pisco and pipelines. Earlier this year, Peru LNG awarded US firm Chicago Bridge & Iron an EPC contract worth more than US$1.5bn for the 4.4Mt/y LNG plant. US company Hunt Oil holds a 50% interest in the consortium, South Korea’s SK Corporation 30% and Spain’s Repsol YPF (NYSE: REP) 20%. Peru LNG spokespersons were not immediately available to provide a project update. (Business News Americas)