Capital flows to Latin America: recent developments

The external environment has deteriorated sharply as a result of the spiraling financial turmoil, and has led to a weakening in commodity prices and fears of a worldwide recession. Latin America and the Caribbean's fastest expansion in 40 years may be threatened as the global credit crunch makes financing scarce and squeezes demand for the region's commodities. This time around the region is better positioned to weather the crisis than in the past, given improvements in macroeconomic and financial policies as well as a reduced net dependency on external capital inflows. However, Latin American markets are feeling the effects of the crisis through a slowdown in capital inflows, large declines in stock price indexes, significant currency adjustments and an increase in debt spreads. Volatility has soared, with the closely watched Chicago Board Options Exchange Volatility Index moving to an all-time high of 70.33 on October 17, indicating that fear (rather than greed) has been ruling the markets.After reaching record lows in May 2007, emerging markets bond spreads are now above pre-Asian crisis levels. The JPMorgan EMBI+ Latin American composite widened by 146 basis points in the third quarter, with spreads reaching 448 basis points at the end of September. Spreads have widened sharply in recent weeks as foreign investors cut back regional exposure for the safety of U.S. Treasuries. The ongoing lack of liquidity and subsequent liquidation of assets is leading to a collapse in asset prices and a sharp widening in spreads. Daily spreads in October have risen to levels not seen since December 2002, making it much more difficult for governments that need financing to get it. Risk premiums for Latin corporates and sovereigns have risen substantially, but have remained well below U.S. junk (high-yield) bonds. Latin corporates are facing a steep rise in foreign exchange borrowing costs (although less than firms in other emerging markets), which raises concerns that refinancing risks will climb.So far, emerging markets vulnerabilities have been more focused on corporates, as sovereigns have improved public debt dynamics and countries' financing needs are under control. Market performance has been driven by the rapid deterioration of emerging markets bank and corporate market, as well as ongoing losses in emerging markets equities. From January to September 2008, the Morgan Stanley Capital International (MSCI) Latin American Index lost almost 28%, while the Emerging Markets Index lost 37% and the G-7 Index lost 24%. While in 2007 the Latin America component gained 47%, almost nine times as much as the MSCI-G7 index for developed markets, since mid-September 2008 stocks in Latin America have been doing worse than stocks in developed countries, as concerns about access to credit and the adverse impact of sharp falls in commodity prices and in local currencies contribute to increased risk aversion and to outflows of capital. Many governments in the region have used revenue from the commodity boom to pay down debt and build reserves. Now, facing a global financial crisis and the threat of recession in developed countries, the biggest question for Latin America is how long and deep this cyclical downturn will be, and how much it is going to reduce commodity prices. Prices for commodities such as soy, gold, copper and oil, which helped fund the region's boom, have fallen 28% since their July 2 high, according to the RJ/CRB Commodity Price Index. According to Morgan Stanley (in a September 29 report), should prices return to their 10-year average, Latin America's balanced budgets would quickly revert to a deficit of 4.1% of GDP. As risk aversion increases, investors are rapidly pulling out massive amounts of money, creating problems for local markets and banks. There is an ongoing shortage of dollars (as investors liquidate assets in Latin American markets), and as currencies depreciate, inflation concerns increase despite the global slowdown. In Brazil and Mexico, central banks deployed billions of dollars of reserves to stem steep currency declines, as companies in these countries, believing their local currencies would continue to strengthen against the U.S. dollar, took debts in dollars. Some companies also made bets using currency derivatives that have led to losses in the billions of dollars. Dramatic currency swings have caused heavy losses for many companies, from Mexico's cement giant Cemex SAB to the Brazilian conglomerate Grupo Votorantim. Mexico's third-largest retailer, Controladora Comercial Mexicana, declared bankruptcy recently after reporting huge losses related to exchange rate bets. As concerns about corporate exposure to dollar-denominated derivatives increases, yields on bonds issued by many of Brazil's and Mexico's leading companies have started to rise, sharply raising the cost of issuing new debt. Latin American external debt issuance came to a halt in the third quarter of 2008, totaling only US$ 690 million. The cost of obtaining loans for capital expenditures, M&A and debt refinancing is also rising substantially for Latin American corporates amid contagion from the U.S. financial crisis. According to bankers, a protracted trend of shortening tenors and widening spreads has intensified in the past few weeks, indicating that bank lending is quickly following the way of bonds and equity. Finally, money transfers from Latin American migrants are expected to decline for the first time this decade, as a result of economic downturns in the U.S. and Spain, inflation and a weaker dollar. The Mexican Central Bank announced that money transfers from Mexicans living in the U.S. dropped a record 12.2% in August. In 2008, migrants from the region will send some 1.7% less in remittances year-on-year when adjusted for inflation, according to the IADB, compounding the adverse effects of the deepening financial turmoil.

Opportunities and risks associated with the advent of digital currency in the Caribbean

This report examines the usage of digital currency technology in the Caribbean subregion with a view to drawing attention to the opportunities and risks associated with this new phenomenon. It discusses the broader context of an emerging activity at the global level and considers how this technology could address subregional deficiencies in the electronic payment infrastructure. The report also discusses mobile money solutions, and the relationship of that technology to digital currency.

O tráfico feminino para fins de superexploração sexual: o caso do Pará

No imaginário feminino da Amazônia Paraense, migrar é um sonho, cujo conteúdo onírico faz parte não só de uma estratégia de sobrevivência, como também de uma busca por ressignificação dos lugares/construções/imaginário/ atribuídos ao feminino, na herança cultural sexista, racializada e heteronormativa imposta na e para a região. Muitas sonham viver em um contexto livre da violência; ter uma casa bonita, filhos saudáveis e um marido bondoso; outras sonham ganhar muito dinheiro trabalhando na prostituição, como dançarinas ou qualquer trabalho que possibilite a realizarão daquele ou de outros sonhos. Todas já escutaram estórias de outras bem sucedidas que migraram, e hoje possuem carro, roupas caras e uma casa para morar. Ouvem dizer, que há boas perspectivas em torno dos Grandes Projetos, mas não fazem ideia de como chegar, pois, muitos desses locais são de difícil acesso, como minas e garimpos. Já ouviram dizer que “no estrangeiro” sua exoticidade rende muito dinheiro. Outras, já ouviram estórias ruins de gente que foi escravizada, presa, deportada ou morta. Mas, apostam na sorte e acreditam que o risco vale a pena. Sabem o quanto é difícil sair do país, tirar passaporte, negociar em outra língua, outra moeda, lidar com uma burocracia complexa, exigente e uma legislação rígida e restritiva. Acreditam que se tentassem migrar sozinhas, sem o apoio de alguém com experiência no ramo, provavelmente não conseguiriam. Até que, aparece alguém se dizendo com experiência e com a oferta de providenciar tudo, com um simples toque da varinha de condão...O tráfico de pessoas, especialmente o feminino para fins de superexploração sexual - que inclui mulheres, travestis e transgêneros é uma violação de direitos humanos no contexto da migração. Terceira atividade ilícita mais lucrativa do planeta perde, segundo a Organização das Nações Unidas – ONU, apenas para o tráfico de drogas e o de armas. Possui natureza multifacetada marcada por uma dupla regulação: a capitalista e a identitária, cuja finalidade é sempre o trabalho escravo, incluindo o casamento servil e a prostituição forçada. Seu contexto extrapola a esfera criminal, perpassa por questões culturais e de gênero. Seu enfrentamento reclama o reconhecimento da diversidade democrática, do direito à não discriminação e dos parâmetros de direitos humanos.

Syndrome in Question

A 48-year-old male patient with chronic alcoholism presented with a soft, bulky, asymptomatic, and slow-growing mass in the posterior region of the neck, as well as nodules in the deltoid region and posterior triangle of the sternocleidomastoid muscle. Needle aspiration confirmed the diagnosis of lipoma. Multiple symmetric lipomatosis (Madelung's disease) is a rare proliferation of adipocytes, of unknown etiology, most common in middle-aged men and mainly associated with alcoholism. It predominantly affects the neck and upper trunk, causing compressive symptoms or a imparting a pseudoathletic appearance. Surgical resection or liposuction is the most effective treatment, despite frequent recurrence.

Syndrome in question

The authors present a male 40-year-old patient with established diagnosis of Behçet's disease which had evolved to recurrent bilateral auricular polychondritis crises. MAGIC syndrome (mouth and genital ulcers with inflamed cartilage) is rare and groups together patients with this clinical picture without necessarily fulfilling the clinical criteria for Behçet's disease or relapsing polychondritis, demonstrating an independent disorder.

On the question of neutrino spin precession in a magnetic field

Using the Feynman procedure of ordered exponential operators we solve the evolution equations for a two-neutrino system considering arbitrarily varying matter density and magnetic field along the neutrino trajectory. We show that a large geometrical phase velocity suppresses νL→νR transitions unless some stationary trajectory is found along the neutrino path. Concerning the solar neutrino case, if we admit the standard solar model matter distribution, no such trajectory can be found.

Here is the Plan: So What is the Question?

In this action research study of my classroom of 5th grade mathematics students, I investigated their understanding of the mathematical operations by having them write problems to match given equations. I discovered that writing a story to match an equation does provide insight into a student’s understanding of mathematical concepts, however, reading comprehension is a factor in the understanding. Readers who struggle with comprehension do struggle with understanding and writing math story problems. The discussion that follows the writing of a math story problem and the solving of the written problems helps to strengthen the students’ mathematical abilities as well as their communication skills and confidence levels. Through my study, students learned that it was alright to make mistakes because the learning from those mistakes is what is important. As a result of this research, I plan to continue to have students write stories to match given equations as a source of information about student understanding. I will continue to give opportunities to revisit those written problems as a tool to increase students’ comprehension and communication skills, as well as their confidence.

Inflammation in cancer cachexia: To resolve or not to resolve (is that the question?)

Background & aims: Cachexia is associated with poor prognosis and shortened survival in cancer patients. Growing evidence points out to the importance of chronic systemic inflammation in the aetiology of this syndrome. In the recent past, chronic inflammation was considered to result from overexpression and release of pro-inflammatory factors. However, this conception is now the focus of debate, since the importance of a crescent number of pro-resolving agents in the dissolution of inflammation is now recognised - leading to the hypothesis that chronic inflammation occurs rather due to failure in the resolution process. We intend to put forward the possibility that this may also be occurring in cancer cachexia. Methods: Recent reviews on inflammation and cachexia, and on the factors involved in the resolution of inflammation are discussed. Results: The available information suggests that indeed, inflammation resolution failure may be present in cachexia and therefore we speculate on possible mechanisms. Conclusions: We emphasise the importance of studying resolution-related mechanisms in cancer cachexia and propose the opening of a new venue for cachexia treatment. (C) 2012 Elsevier Ltd and European Society for Clinical Nutrition and Metabolism. All rights reserved.

Inactivation of the hypermethylated in cancer 1 tumour suppressor--not just a question of promoter hypermethylation?

The chromosomal region 17p13.3 is frequently deleted or epigenetically silenced in a variety of human cancers. It includes the hypermethylated in cancer 1 (HIC1) gene placed telomerically to the p53 tumour suppressor gene. HIC1 encodes a transcriptional repressor, and its targets identified to date are genes involved in proliferation, tumour growth and angiogenesis. In addition, HIC1 functionally cooperates with p53 to suppress cancer development. Frequent allelic loss at position 17p13.1 in human cancers often points to mutations of the tumour suppressor p53. However, in a variety of cancer types, allelic loss of the short arm of chromosome 17 may hit regions distal to p53 and, interestingly, without leading to p53 mutations. Furthermore, the neighbouring region 17p13.3 often shows loss of heterozygosity or DNA hypermethylation in various types of solid tumours and leukaemias. In line with this concept, Wales et al. described a new potential tumour suppressor in this region and named it hypermethylated in cancer 1 (HIC1). Further, it was shown that in the majority of cases hypermethylation of this chromosomal region leads to epigenetic inactivation of HIC1. A role for HIC1 in tumour development is further supported by a mouse model, since various spontaneous, age- and gender-specific malignant tumours occur in heterozygous Hic1+/- knockout mice. Furthermore, exogenously delivered HIC1 leads to a significant decrease in clonogenic survival in cancer cell lines. This review highlights the role of HIC1 inactivation in solid tumours and particularly in leukaemia development.