Prosecutors and federal police in Brazil unearthed the country's largest-ever corruption scandal by tying a ring of black-market money changers to a price-fixing and political kickback scheme at state-run oil firm Petrobras. Executives from two dozen engineering firms are accused of inflating the value of service contracts and funneling the excess funds into their own... Continue Reading →
An Oil Scandal That is Shacking Brazil – Washington Post
There are times in Brazil’s young democracy -- its constitution dates from 1988 -- when the country seems to be making things up as it goes along. This is one of them. Read More
Brazil Real Tumbles Hard
SAO PAULO, July 24 Brazil's currency, the real, plunged to its weakest level in 12 years on Friday as investors continued to digest the government's recent announcement that it would slash its fiscal savings goals. Currencies daily % YTD % Brazil real 3.3500 -1.63 -20.87 Mexico peso 16.225 -0.10 -9.13 Chile peso 660.9 -0.74 -8.25... Continue Reading →
Brazil to Charge Odebrecht CEO
Brazilian prosecutors will present formal charges Friday against the chief executive of Latin America's largest engineering firm and other senior executives detained last month in a landmark investigation meant to show the country's elite are not above the law. Marcelo Odebrecht, the third-generation chief executive of the family-run Brazilian conglomerate, could face charges of corruption... Continue Reading →
Currency Drop Sparks Race to Cut Brazil Forecasts
The Brazilian real’s 4.5 percent tumble this week, the most among major currencies worldwide, has forecasters reviewing estimates after the government said it won’t meet fiscal targets. The real touched a 12-year low Friday, falling faster and farther than economists had predicted, after Finance Minister Joaquim Levy asked lawmakers to cut a key budget goal.... Continue Reading →
No Love for Brazil Budget Plan
Brazil traders see Finance Minister Joaquim Levy’s admission that the government won’t meet its fiscal goals as a bad omen. The real touched a 12-year low, while the Ibovespa led declines among major equity benchmarks after the government asked lawmakers to approve a reduction in its target for the budget surplus before interest payments. The move sparked... Continue Reading →
Oil Returns to Bear Market
Oil relapsed into a bear market in New York as resilient U.S. output, rising OPEC supply and threats to Chinese demand keep a global glut in place. West Texas Intermediate futures dropped 1.5 percent Thursday to close at $48.45 a barrel. The grade has lost 21 percent in the past six weeks, meeting the common... Continue Reading →
Petrobras union may follow 24-hour strike with September walkout
Brazil's main oil workers union is considering an open-ended strike in September if a 24-hour walkout scheduled for midnight Thursday fails to stop moves to shrink state-run oil company Petrobras, a senior union official said. FUP, which represents platform, refinery and other workers, is fighting plans by Petroleo Brasileiro SA, as Petrobras is known, to... Continue Reading →
Brazil Rating Firm Strips Country of Investment Grade
A local ratings firm stripped Brazil of its investment grade on Thursday, saying President Dilma Rousseff's new budget savings goals are insufficient to stabilize the country's growing debt burden. Austin Rating, which specializes in rating local financial institutions and companies, cut Brazil's foreign-currency debt to BB-plus, a level considered "junk," and the local-currency debt to... Continue Reading →
Fitch to reevaluate Brazil fiscal trend
Fitch Ratings said on Thursday it will reevaluate Brazil's fiscal trends, which are key for its decision on whether to downgrade the country's credit ratings, after the government slashed its budget savings targets for this year and next. Brazil's new fiscal savings goals are below what Fitch had estimated in April, when it decided to... Continue Reading →
Brazil Energy Insight 