By Todd White

Madrid, April 25 (<a href=quote.bloomberg.com>Bloomberg) -- Santander Central Hispano SA Chairman Emilio Botin last year oversaw the first profit drop at Spain's biggest bank in 15 years, hurt by its Latin American business. He's shifting the focus to Europe to revive earnings.

Botin, who led almost $17 billion of acquisitions in Latin America in the past decade, is selling assets in the region and buying consumer-finance businesses across the European Union, which will grow to 25 member states from 15 next year. Botin also plans to open retail branches in Spain and hire 500 employees.

The strategy shift by the 68-year-old executive helped cushion a drop in first-quarter earnings, analysts said. Rising profit in Europe, and 11,800 job cuts around the world last year, partly offset a decline in Latin America, where Santander is the biggest bank. The Madrid-based company releases earnings Monday.

He's making a good wager,'' said Miguel Larruga, who owns Santander shares and manages the equivalent of $220 million at Ahorro Andaluz. The European Union is taking on new members, and economic growth is more certain than in Latin America.''

Santander shares have gained 13 percent in the last three months, compared with a 6 percent increase in shares of Banco Bilbao Vizcaya Argentaria SA, the No. 2 bank in Spain and Latin America. The 78-member Bloomberg Europe Banks and Financial Services Index has climbed 7 percent in the period.

Profit from retail banking in Latin America probably fell 32 percent in quarter, compared with a 15 percent gain in Europe, estimates Jose Luis de Mora, an analyst at Merrill Lynch & Co.

Currency Hedges

Currencies in Brazil, Mexico and Venezuela dropped against the euro in the past 12 months, leading Santander to post a 10 percent drop in first-quarter profit to 606 million euros ($664 million), the median estimate of six analysts surveyed shows.

The Brazilian real dropped 44 percent against the euro in the past 12 months, while the Venezuelan bolivar declined 58 percent against the single currency. The Mexican peso fell 31 percent.

``Latin America still hangs over earnings, but that's changing,'' said Jose Manuel Jimenez, who helps manage the equivalent of $7.7 billion at Grupo Generali in Madrid.

In February, Santander officials said the bank increased hedging against the impact of Latin American currencies. The bank also hedged 100 percent of the impact on reserves for the Mexican and Chilean peso, and 35 percent for the real. The Chilean peso has lost 26 percent against the euro in 12 months.

Consumer Finance

At the same time, Botin is expanding in Europe. In Spain, Botin plans to open 100 offices in 2003 and hire 500 employees, mostly in sales, at its flagship SCH retail bank. It has lost market share in Spanish loans after closing 1,700 branches in three years at SCH and its local Banesto unit.

Botin, who earned 2.47 million euros in salary and had 1.38 million euros in company loans in 2002, may also make more purchases in consumer finance following the 1.1 billion-euro acquisition of a German auto-leasing company two years ago, analysts said.

Last month Santander bought the remaining 50 percent of its Italian consumer finance company Finconsumo from San Paolo-IMI SpA. Eastern Europe is the next target, bank officials say.

Now's the time to get positioned in this business,'' said Roma Vinas, who owns Santander shares and helps manage the equivalent of $160 million at Privatbank in Barcelona. Consumer lending is risky because bad loans can balloon easily, though consumers will drive the business when the economy rebounds.''

Financing cars, appliances and credit cards earned a 25 percent return on equity last year, the 146-year-old Santander's top division by that measure after asset management.

Consumer finance probably surged 84 percent in the first quarter, Merrill's de Mora estimated.

Third Generation

Investors like this re-focus on Europe, especially on consumer finance,'' said Jean Baptiste Bellon, an analyst at Deutsche Bank who rates Santander a short-term buy.''

Botin, the third-generation of his family to head Santander, is cutting the bank's dependence on Latin America by selling assets, while rivals take advantage of a slowdown to buy them. ABN Amro Holding NV this month agreed to pay about $750 million in cash and stock for Brazilian bank Banco Sudameris Brasil SA.

``Investors were glad Santander didn't buy Sudameris,'' said Deutsche Bank's Bellon.

Last year, Botin sold $7 billion of assets, including a quarter of the Serfin unit, Mexico's third-biggest bank, to Bank of America Corp. The sale probably yielded a first-quarter capital gain of 600 million euros, analysts estimate.

Latin America will probably account for 29 percent of Santander's total profit this year, down from 35 percent in 2002, according to analysts at Morgan Stanley. Rising profit in Europe and lower losses in Latin America should enable Santander to post an increase in profit again in the full year, analysts said. Last Updated: April 24, 2003 19:02 EDT

By Peter Blackburn, Boston.com-Reuters, 4/23/2003

RIO DE JANEIRO, Brazil (Reuters) - South American defense ministers agreed at an inaugural meeting Wednesday to step up efforts to jointly fight international crime, drugs and arms smuggling.

''This first meeting strengthened our conviction that we have a joint future of peaceful collaboration,'' Brazil's Defense Minister, Jose Viegas, said at a news briefing.

It followed a decision last November by 34 Western Hemisphere defense ministers in Santiago, Chile, to support a U.S. proposal to combat terrorism.

Viegas said that ministers had agreed to improve the exchange of information on international criminals and aim to gradually standardize military equipment.

''It would enable the creation of regional joint ventures to take advantage of economies of scale,'' he said.

Chile, which is wary about using the military to combat drugs trafficking, gave general support.

''Our countries share common interests and democratic principles,'' said Chile's Defense Minister, Michelle Bachelet.

But Bachelet said that ministers needed to define what kind of security was needed.

South American countries differ over sea, land and air security priorities, perceptions of internal and external threat and if the army, paramilitary or police should be used.

Less than 10 years ago, South American countries were still locked in bloody border disputes.

Asked about regional security and arms spending after the U.S.-led war in Iraq, Viegas said it would have little impact as South America was strategically remote from the conflict.

''We are all convinced that orthodox threats of war are very remote. But we must be prepared to face new threats from illicit transnational activities such as drugs and arms,'' Viegas told Reuters afterward.

''We must do this as cohesively as possible. Each country has its own point of view ... but we face common problems,'' he added.

Viegas stressed the need to tighten joint air and land surveillance of the vast Amazon jungle, a largely deserted area greater than western Europe, to clamp down on drug and arms traffickers, illegal loggers and miners.

Brazil's Amazon borders on seven countries, including war-torn Colombia.

Ministers from nine south American countries met during a Latin American Defense Fair in Rio de Janeiro. Senior officials from Colombia, Venezuela and Guyana were also present.

MiamiTodayNews.com Week of April 24, 2003     By Frank Norton

   Florida's trade with South America is rebounding, industry observers say, and this year's numbers should show an improvement from a miserable 2002.

   Many freight forwarders expect Florida exports to the continent to grow in the second half of this year as Brazil, Argentina and Colombia regain strength and the ability to buy foreign goods. And customs brokers see local import volumes rising as those nations turn their weak currencies toward shipping competitively priced goods.

   "From a trade point of view, the expectation for the region is good except for Venezuela," said J. Antonio Villamil, head of Gov. Jeb Bush's Council of Economic Advisors and CEO of Washington Economics Group in Coral Gables.

   Mr. Villamil said that short of a regime change, Venezuela's chances for regaining strength as a Florida business partner this year are slim to none. But he said sunnier roads lie ahead for the state in other key South American economies - including Chile, which could have a trade agreement with the US signed this year.

   "It's nothing to write home about, but we've at least arrested the downturn in trade and are on the way back up to 2001 levels," said Mr. Villamil.

   Because of South Florida's heavier economic exposure to South America, the state's exports declined more severely last year than did the US average.

   Florida-origin exports to Brazil, the state's largest trading partner, fell 23%, or $843 million, in 2002 to $2.8 billion, according to Enterprise Florida, the state's economic development agency. Origin exports are goods produced in Florida, as opposed to goods shipped to Florida from elsewhere in the US and then exported.

   The state's other key South America partnerships fared even worse. Origin exports to Venezuela dropped 25% in 2002, while those to Argentina plummeted 69%.

   Florida's trade last year with South America hit bottom, said John Abisch, president of Miami-based transporter Econocaribe Consolidators, and should be on the rebound.

   Mr. Abisch estimated that his firm's export-related business to South America is still down 20% from 18 months ago even though it has stabilized this year. He said he expects business levels this year to improve about 10% from last year.

   According to John Price, president of Latin America market researcher InfoAmericas, Mr. Abisch's expectation is representative of expected improvements statewide. He said overall trade between Florida and South America should pick up 5-10% this year if first-half trends hold into the rest of the year.

   He said positive perceptions about President Luis Inácio "Lula" da Silva's administration will continue to cut borrowing costs in Brazil and help the country regain trade with Florida and the rest of the world. And the strengthening of the Brazilian real is boosting the country's ability to buy foreign goods, he said.

   Likewise, positive perceptions could also help the country attract $12 billion this year in foreign investment, Mr. Price said.

   "I think we could see Brazil within a year get back to 2001 trade levels," he said.

   He said he expects Argentina imports to surge about 20% this year, with slight gains in foreign investment driven by investors' interest in undervalued assets.

   Comparative stability in Colombia should help it purchase more Florida-origin goods in 2003, Mr. Price said, but continued political unrest will preclude any dramatic improvements.

   The most serious and uneasing problems remain in Venezuela. The consensus among South Florida trade experts and economists is that the country will gain little if any ground this year as a producer, exporter or importer. "Very little will be exported there because of increasingly strict currency restrictions and the fact that its economy is grinding to a halt," Mr. Villamil said.

   Encouragingly, economies in Brazil, Colombia, Argentina and others are performing better than had been expected in terms of monetary and fiscal policy and the welcoming of foreign investment, he said. And the US could see as much as a 10% jump in short-term trade with Chile if Congress ratifies a free-trade agreement.

   Since 1999, Florida has led the nation in exports to Chile, followed by California, Texas and Illinois, according to the American Chamber of Commerce in Chile.

   "I see good things to come, given the trust in economic policies and the US-Chile agreement," Mr. Villamil said - "good for the nation, good for South Florida."

<a href=www.sfgate.com>SFGate.com\Tuesday, April 22, 2003
(04-22) 15:11 PDT MEXICO CITY (AP) --

A rebound in U.S. equities markets gave Mexican stocks a lift Tuesday, although volume remained modest as first-quarter earnings season gets into full swing.

The market's key IPC index closed up 47.26 points, or 0.7 percent, to 6,373.91. At the end of 2002, the IPC stood at 6127.09.

Volume was 62.5 million shares worth 789.7 million pesos.

The local market tracked the U.S. throughout the session, shaking off early losses and moving higher. The Dow Jones Industrial Average and the Nasdaq composite index both rose 1.9 percent.

Leading the local rally were L shares of wireless telephony concern America Movil, which rose 2 percent to 8.33 pesos on solid volume. America Movil is scheduled to release its first-quarter earnings report Wednesday.

The L shares of fixed line phone giant Telmex, which plans to report later Tuesday, rose 0.4 percent to 16.47.

SAO PAULO, Brazil (AP) -- Brazil's stocks ended higher Tuesday to set a new 10-month high as the country's currency recovered from early weakness and stocks on New York exchanges rose.

Local gains were restricted by worries President Luiz Inacio Lula da Silva may encounter difficulty getting his pension reform proposal through Congress.

The main Sao Paulo index finished 0.5 percent up at 12,452 points, compared with 12,395 points at Thursday's close, its best close since June 10, 2002.

The exchange was shut Friday and Monday for holidays.

Stocks are also likely to rise Wednesday, when the central bank is expected to keep its benchmark interest rate unchanged at 26.5 percent and refrain from tightening the money supply. Many traders expect a rate cut in May.

On the stocks front, bellwether Telemar rose 0.8 percent to 31.02 reals and oil giant Petrobras gained 1.5 percent to 48.20.

Banco Bradesco rose 1.3 percent to 12.10 and steelmaker Usiminas gained 2.5 percent to 11.29.

BUENOS AIRES, Argentina (AP) -- Argentine stocks rose once again Tuesday, as investors kept plowing new funds into the market on the back of growing optimism about the outcome of the upcoming elections.

The large-cap Merval Index ended up 8.48 points, or 1.4 percent, at 649.75 points, while the broader General Index was up 294.30 points, or 1.0 percent, to 29,896.91 points. Volume was a strong 86.7 million pesos.

After the publication of opinion polls showing that two market-friendly candidates and one moderate candidate were the frontrunners for Sunday's presidential election, the markets saw one of their largest gains in years Monday, with the Merval rising more than 6 percent.

Bank stocks were among the sectors that benefited from positive election momentum. Grupo Financiero Galicia, which posted a 10.6 percent gain Monday, rose 2.9 percent Tuesday to 93 centavos, while Banco Frances climbed 1.7 percent to 5.33.

Companies that have recently announced debt restructuring proposals also performed well Monday. Steel company Acindar rose 3.8 percent to 1.62. Natural gas distributor Transportadora Gas del Sur, which ended 13 percent higher Monday, climbed 1.8 percent to 1.74.

SANTIAGO, Chile (AP) -- Share prices on the Santiago Stock Exchange closed lower Tuesday, taken down by profit-taking, above all in shares that have U.S. ADRs.

Chile's blue-chip Ipsa index fell 0.6 percent to 1,083.28 points. The narrower Inter-10 index of more liquid internationally traded Chilean shares lost 0.8 percent, ending at 105.84.

Volume declined slightly to 13.68 billion pesos.

The list of decliners was led by U.S.-listed wine maker Concha y Toro, which fell 5.5 percent to 520 pesos.

Among other U.S.-listed stocks, retailer D&S lost 2.7 percent to 447.50, and airline LanChile lost 2.3 percent to 860.

CARACAS, Venezuela (AP) -- Venezuelan shares ended a bit lower Tuesday following the market's biggest stock, CA Nacional Telefonos de Venezuela, or CANTV, which lost 2.3 percent.

The IBC General Stock Index, of which CANTV accounts for 40 percent, closed at 8,417 points, down about 0.5 percent. Trades totaled an equivalent of about $108,000.

CANTV closed 2.3 percent, lower at 2,285 bolivars.

The Miami Herald Posted on Wed, Apr. 16, 2003 BY NERY YNCLAN nynclan@herald.com

Tonight, Soiby Siedner will have 22 people over for dinner, Thursday, 25. They will be treated to Passover recipes that have fed generations of her family and traveled thousands of miles from Romania to Peru to Colombia -- and now her South Florida table.

''The shredded potatoes with egg and onion and starch is from my mother's grandmother,'' says Siedner, a Peruvian, who moved to Plantation from Colombia three years ago with her husband and three children. ``And from my husband's side I have recipes that go way, way back to his great, great, great-grandmother.''

The Passover spread will be a taste of home for her and thousands of other Latin American Jewish families who have made their own exodus from beleaguered homelands. Economic and political upheaval, particularly in Argentina, Venezuela and Colombia, has brought thousands of Latin American Jews to South Florida in recent years -- so many that the Miami-Dade and Broward Jewish federations as well as temples have set up Latin programs to help the new arrivals settle in and make new friends.

Temples in both counties will be serving Passover dinners tonight and Thursday to those without extended families to share in the holiday that marks the exodus of Jewish slaves from Egypt.

VARIED CULTURES

''They come from every possible country of Latin America, and each has a different culture, different accent, and come escaping different situations,'' says Rabbi Samuel Kieffer of Temple B'nai Aviv in Weston. ``But all of them share in the ancient story of Passover, the exodus from Egypt to find freedom that is still being lived out in their life stories.''

It was the country's economic hardships that drove Karina Butensky and her family from Argentina three years ago.

''We didn't see a future there, so we decided we had to come here,'' says Butensky, a mother of two in Plantation. ``We have everybody still in Argentina. We miss them a lot. It's very hard -- especially on a holiday.''

Butensky says she will still host a warm celebration with many friends and many traditional dishes, including the gefilte fish she makes from scratch.

''Passover is a real family holiday,'' says Butensky, who works at a Hebrew day-care center. ``For Latin families who don't have their families with them, it's very important for friends to sit together.''

Juan Dircie, of Jewish Community Services' new Latin American Immigration Program, says some 450 new families in Miami have registered in the last year. But he estimated that thousands more are going directly to temples or friends for orientation and much needed sponsors so they can stay in this country.

OUTREACH PROGRAMS

Temple Menorah in Miami Beach, for example, has hired six Argentines to handle community outreach and started an institute of Latin American Jewish studies to prepare young people for professions in Jewish leadership.

The Jewish Federation of Broward County has helped start Hebraica, a religious and social club for newly arrived Latin Jews who want to meet other families. Many temples have added services in Spanish one night a week to accommodate the new immigrants.

''The majority are professionals, bilingual, very involved in their Jewish communities back home,'' says Dircie. ``In Latin American countries, Jewish education is very strong. They especially emphasize Jewish day school, where the children learn secular studies in the morning and all afternoon is dedicated to Judaic and Hebrew studies.''

Latin American Jews are from both Ashkenazic and Sephardic traditions. The Ashkenazi are usually of eastern European descent, as are most American Jews, and the Sephardi are usually descended from Moroccans, Turks, Greeks and Syrians who ended up in Spain -- only to be driven out by the Spanish Inquisition.

The storied migrations of the Jewish people make for a flavorful blending of cultures that have made their way to the Passover table.

MOROCCAN INFLUENCE

Rabbi Abraham Bencaquen was born in Spain, but his grandparents were from Morocco so the leader of Miami Beach's Torad Mosche celebrates the holiday with a table of Moroccan-influenced delights. His congregation is entirely Latin, the majority Cuban.

''In my house, except for the gefilte fish, we eat like you eat in Morocco,'' Bencaquen says.

The rabbi's favorites include spicy Moroccan fish with cilantro, hot dried peppers and lima beans and meatballs with peas, according to his wife, Rachel, who comes from an Ashkenazi Hungarian-Romanian background.

Rachel was born in Israel but lived for many years in Venezuela and Panama.

''Right now, I'm frying some potato latke, which is from the Ashkenazi,'' says the mother of five. ``Many years ago when I met my husband, I started to learn all the Moroccan foods, and now I make the best from both traditions.''

For those recently arrived, Passover fare will be comfort food to ease the longing of being so far from home.

Aventura architect Maya Hager moved here from Ecuador five years ago to attend the University of Miami. Last year her parents joined her, but she says holidays are still just not the same.

''I'm coming from a small Jewish community where everybody knows everybody for generations,'' she says. ``Everybody here is new -- you don't know where they come from. There are so many temples, so many organizations.

``This holiday is going to be weird. It's the first time we won't be with our family in Ecuador or with my mother's family in Israel.''

Colombian Isaac Wancier arrived a year ago to join his brother who had come the year before. He says the situation is so bad in his country it seems no one can find work and the fear of kidnapping is ever looming.

''You just feel unsafe in Colombia,'' says Wancier, who is working for a Broward refinishing products company. ``It's such a beautiful country, and we can't leave the city because you could be kidnapped. Many more Colombians will be coming -- Jewish and non-Jewish.''

Wancier says moving here has not been a panacea, as he has found it hard to make friends and meet a nice woman.

''I'm 36 and desperate. Starting in a new country is very hard,'' he says. Nonetheless, this Passover will be nice -- his mother is visiting for the holiday.

''Now I have my mama for two weeks,'' he says. ``Then, I eat the junk food again.''