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A top aide to Luiz Inacio Lula da Silva when he was president was charged with corruption, money laundering and racketeering on Friday, making him one of the most senior members of Brazil's ruling Workers' Party targeted by prosecutors in a massive kickback scandal. Jose Dirceu, who was Lula's chief of staff between 2003 and... Continue Reading →
Petroleo Brasileiro SA is doing away with chauffeured cars, overseas training programs, office parties and other perks as part of a plan to save $12 billion in corporate spending, people familiar with the measures said. The chief executive officer and heads of divisions will be allowed to keep their cars with drivers, though, the people said, citing an... Continue Reading →
The Brazilian Real closed at 13 year high at R$3.8585 against the USD. For the week the Brazilian currency devalued 7.62%, for the year at 45.07% and for the 12 months at 72.06%. The currency has taken a beating caused basically by the lack of political stability, besides the economic problems caused by poor economic... Continue Reading →
Brazil’s real extended its weekly decline to the biggest since March as assurances that Finance Minister Joaquim Levy would remain in his post failed to quash concern the country will lose its investment-grade rating. The currency swung between gains and losses Thursday before Chief of Staff Aloizio Mercadante said that the architect of Brazil’s efforts to... Continue Reading →
Undisclosed sources say that Exxon has team at Petrobras analyzing four pre salt blocks that may be for sale or participation. The blocks are Carcara and Jupiter in the Santos Basin and Pão de Açucar and Tartaruga in the Campos Basin. The majors (Shell and Exxon) show interest in the larger offshore blocks.
When he came aboard this year as Brazil’s finance minister, Joaquim Levywas hailed by many as the fiscal hawk who would bring discipline to the country’s big-spending leftist government. Nicknamed “Joaquim Scissorhands” for his penchant for cost-cutting, the conservative economist, who holds a doctorate from the University of Chicago, set aggressive fiscal targets and vowed... Continue Reading →
Brazil’s political and economic crises are creating one bright spot for finance bankers and lawyers looking for work: Firms including Rothschild and G5 Evercore are hiring to help ailing companies restructure their debt. Boutique advisory firm G5, in which Evercore Partners Inc. has a 47 percent stake, hired Ricardo Moura and Marcio Santiago Goncalves, former... Continue Reading →
Brazil’s central bank left its benchmark interest rate unchanged on Wednesday at the highest level in nine years as the long battle with inflation continues with little relief in sight. The bank’s monetary-policy committee left the benchmark Selic rate at 14.25%. The committee repeated its statement from its previous meeting, saying the Selic should stay... Continue Reading →
Brazil has stronger credit dynamics than lower-rated nations and an outlook for economic and fiscal recovery that would make a reduction to a junk grade unjustified, Moody’s Investors Service said. When Moody’s gave Brazil a stable outlook after reducing its credit rating last month to Baa3, its lowest investment grade, it found that the nation... Continue Reading →
Bonds of Vantage Drilling Co. dropped as Petroleo Brasileiro SA terminated a $1.7 billion drill deal amid a bribery investigation. The deepwater-rig owner’s $1.1 billion of 7.5 percent secured bonds slid 5 cents to 42 cents on the dollar, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Its contract for... Continue Reading →
Brazil Energy Insight 