Earning Release

Companhia de Bebidas das Americas (NYSE:ABV) While net sales were in line with our estimate in 2Q 09, operating and adjusted net margin was below our expectations, reflecting higher-than-anticipated Selling, General & Administrative (SG&A) and tax expenses during the quarter. Going forward, we expect robust growth in Brazil beer volumes to drive full-year revenue growth over the next two years. In light of a positive outlook for the Brazilian economy, although the target price does not support a HOLD, we reiterate the preferred stock a HOLD. We will reassess our target price and rating in our 3Q 09 update report. Given the current price and our anticipation of a negative currency impact on the ADR over our 6-24 months investment horizon, we reiterate our SELL rating for the ADR. We will reassess our target price and rating in our 3Q 09 update report.

New Valuations

Southern Copper Corporation (NYSE:PCU) Recovery in developed markets is expected to boost copper demand in 1Q 10 and remain stable from thereon, based on demand from countries such as India and China. This will benefit metal prices, going forward. According to Southern Copper’s CEO Oscar Gonzalez Rocha, copper prices are expected to reach US$4 per pound (current prices at US$3 per pound) in 2010, based on an expected rise in consumption from European and American markets. 69.3% of the company’s revenue has been generated from copper sales so far in 2009, therefore we expect rising copper prices to benefit topline in 4Q 09 and 2010. The company has also increased its copper sales guidance from 490,000 tons to 500,000 tons for 2009 and is expecting to restart its Cananea mine facility in 2010, which has a capacity to produce 180,000 tons of copper annually. We believe that all the expected positives have been factored in by investors and are reflected in the company’s NYSE common stock price and therefore maintain our SELL rating.

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