ADVFN - Advanced Financial Network.
HOME» NYSE » B » SAN Stock Price » SAN Stock News

Banco Santander Chile Share News

 Banco Santander Chile (new) Stock Price
SAN Stock Price
 Banco Santander Chile (new) Stock Chart
SAN Stock Chart
 Banco Santander Chile (new) Stock News
SAN Stock News
 Banco Santander Chile (new) Company Information
SAN Company Information
 Banco Santander Chile (new) Stock Trades
SAN Stock Trades

Brazil Component Imports, Investment Benefit From Strong Real-Santander

--Brazilian growth tends to be more robust when currency is strong --Strong currency favors imports of components, capital goods --After 2012 slowdown, Brazil is headed for rebound next year-Santander By Luciana Magalhaes SAO PAULO--If history is a guide, Brazil's deliberate weakening of its currency, the Brazilian real, might not add support to the country's faltering economy, according to the chief economist of Banco Santander Brasil (SANB11.BR). "Over the last 20 years, Brazil's economy has always grown faster when the real was stronger, not weaker," Mauricio Molan, chief economist of the Brazilian unit of Spain's Banco Santander (SAN.MC), said in an interview with Dow Jones Newswires. "I am not saying that a strong currency necessarily leads to better economic performance," he added. "It's because, when the economy is doing well, the currency tends to strengthen. It's also true that, whenever the currency is strong, imports grow faster than before and so do investments." He said there was "such a correlation at the beginning of the Real [Stabilization] Plan in 1994 and again between 2004 and 2007." Brazil's gross domestic product grew at an annual rate of more than 5% in 1994 and again in 2004, 2007 and 2008. So far this year, the Brazilian real has depreciated by about 9% against the U.S. dollar. At least part of the depreciation came after the government adopted a series of measures seeking to curb the currency's strength to protect local industry. "While a stronger currency might lead companies to work harder to gain a competitive edge and reduce costs, a weaker currency may serve to simply hide inefficiencies," Mr. Molan said. But he added that he considers government action justified whenever there is an "exaggerated" currency appreciation. Mr. Molan said Brazil has too often made a connection between competitive advantage and currency, even though a large proportion of Brazil's imports are either intermediary goods, such as components for manufactured products, or heavy machinery. Commodities are priced in dollars and this important export sector is more influenced by movements in the U.S. currency. "For companies that depend on intermediary goods or machinery, a depreciation of the currency makes them less competitive," he said. "Meanwhile, 55% of Brazilian exports are related to the commodities sector, which are less affected by the currency." There are other ways to stimulate growth, the economist said. Brazil has been seeking to stimulate its economy with an agenda of sector-specific tax cuts, exchange rate depreciation and lower interest rates. "Now, I believe, it would be very beneficial if the government also took a more aggressive stance towards fiscal cuts, infrastructure development and productivity," said Mr. Molan. He noted, however, that Brazil is in an inverse situation in relation to the troubled euro-zone countries. "These countries have to raise taxes and cut spending," he said. "Brazil, with declining interest rates, has a strong fiscal position." Santander Brasil is still relatively optimistic about Brazil's performance in 2012, projecting a growth rate of 2.2%, which is slightly above market consensus of 1.9%. For 2013, the bank forecasts a much stronger pace of growth, 4.7%, due to the lagging effects of stimulus policies adopted in 2012. Brazil's economy continued to slow in the first three months of the year as weak industrial production and easing domestic demand undermined growth for a sixth-consecutive quarter. Brazil's GDP expanded at a rate of only 0.8% compared with the first quarter of 2011. Family consumption increased 2.5% year-on-year as Brazilians took advantage of record-low unemployment, higher wages and access to credit. However, non-performing loans increased markedly in the first half of the year, raising concerns about the stability of Brazil's recent consumption-led economic growth. "We believe there are conditions in place for consumption to remain strong," said Mr. Molan. "We don't buy the theory that demand-led growth has been exhausted. Brazilian economic policy has been focused on sustaining family incomes. Such policies will allow consumption to keep expanding while, at the same time, helping families put their finances in order." Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stock News for Banco Santander Chile (SAN)
DateTimeHeadline
07/22/201413:12:47EUROPE MARKETS: FTSE Hits 2-week High As Oil Shares Rise Across...
07/22/201410:05:24EUROPE MARKETS: Oil Shares Drive Higher In Europe; Publicis Slides
07/22/201406:41:02EUROPE MARKETS: Oil Shares, ARM Drive Gains In European Markets
07/10/201402:56:13CNP to Buy 51% Stake in Santander Consumer Finance's Insurance...
06/30/201403:36:34CNP, Banco Santander in Talks Over Consumer Finance Alliance
06/24/201412:00:06Correction to Fed Gives Four Banks Time to Resubmit Capital Plans...
06/23/201412:17:16EUROPE MARKETS: European Stocks Fall As U.K. Housing Plays Struggle
06/23/201405:31:03Santander to Buy Nordic Units of GE Money
06/06/201404:58:35EUROPE MARKETS: European Stocks Up After ECB Cuts; Weekly Win...
06/05/201421:55:20SocGen, Santander Weigh Link with Germany's Commerzbank -- Reports
06/02/201413:59:36King Juan Carlos' Abdication Leads to Debate on Spanish Monarchy
05/29/201416:05:50Providence, R.I., Files Federal Lawsuit Against Banco Santander--2nd...
05/29/201415:30:50Providence, R.I., Files Lawsuit Against Banco Santander
05/29/201415:24:15Providence, R.I., Files Federal Lawsuit Against Banco Santander--Update
05/08/201412:14:05EUROPE MARKETS: Draghi Comments Send European Stocks Higher
04/29/201418:06:12ADR Shares End Higher; ABB, Deutsche Bank and Banco Santander...
04/29/201410:24:15Santander Looks to Buy Rest of Brazil Unit in $6.5 Billion Deal...
04/29/201406:25:38Santander Looks to Buy Rest of Brazil Unit in $6.5 Billion Deal...
04/29/201404:31:58Santander Profit Rises
04/29/201403:36:38Poland's BZ WBK Net Profit Up 20% in 1Q at PLN449 Million

Banco Santander Chile and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad