Latin American Markets Mostly Lower; Telefonica Slashes Executive Pay, Suspends Dividend in Bid to Cut Costs

By Staff,

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Latin American markets are mostly lower today, with concerns over the pace of global economic growth casting a shadow, although solid gains for shares of gold companies and other miners are helping limit losses.

Here's where the major regional market gauges stand:

- Ibovespa down 80.5 (-0.15%) to 52,558.

- IPC (Mexico City) down 177.6 (-0.4%) to 40,516.

- Santiago Index IPSA down 1.35 (-0.03%) to 4,319.81.

- Merval Buenos Aires up 8.90 (+0.37%) to 2,397.

In company news, U.S.-listed shares of Telefonica SA ( TEF ) are at year low levels with the provider of fixed and mobile telephone services in Spain and Latin America cancelling its dividend and stock buyback program as part of broader cost-saving moves as its business in Europe deteriorates.

Board members also will take a 20% pay cut while CEO Cesar Alierta and other senior managers will see their paycheck slashed 30%.

TEF earlier this morning reported a $532.6 million (BRL1.085 billion) Q2 profit, up more than 13% from net income of $469.6 million in the year-ago quarter. But quarterly revenue slipped nearly 1% to $4.046 billion, down from $4.08 billion last year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: TEF

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