Brazil’s central bank raised its key rate by 50 basis points for a sixth straight meeting and signaled that borrowing costs are high enough to slow inflation toward its target. The bank’s board, led by President Alexandre Tombini, boosted the Selic rate to 14.25 percent Wednesday as forecast by 50 of 58 economists surveyed by... Continue Reading →
Mexico Said to Start Annual Oil-Hedging Program
Mexico started its annual program to lock in oil sales for the coming year as a shield against a further drop in prices, three people with direct knowledge said. Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc. are among the banks involved, said the people, who asked not to be... Continue Reading →
Brazil downgrade threat is a real danger sign
When Standard & Poor’s said on Tuesday it was considering downgrading Brazil’s credit rating by one notch to junk, markets seemed to shrug off the news. After initially touching a 12-year low, Brazil’s currency, the real, finished virtually flat at R$3.36 against the dollar while the Ibovespa benchmark stock index resumed a rally from earlier in the day,... Continue Reading →
Brazil set to hike rates as inflation risks rise
(Reuters) - Brazil's central bank was poised to maintain its aggressive pace of interest rate hikes on Wednesday after a steep cut in fiscal savings targets weakened the real currency and stirred doubts about the government's commitment to help contain price increases. Forty-two out of 55 analysts surveyed by Reuters last week expect the central... Continue Reading →
How Big Was BP’s $5.8 Billion Loss?
BP Plc reported a $5.8 billion net loss last quarter, not including inventory holding losses, citing low oil prices and charges from the 2010 Gulf of Mexico oil spill. How does that stack up for the London-based energy giant? Read More
Brazilian Real Forecasters’ Pessimism Deepens
Brazil’s failure to meet the government’s fiscal goal, a contracting economy and President Dilma Rousseff’s sinking popularity are making forecasters of the nation’s currency the most pessimistic in a month. The drop in the real took it to a level weaker than the year-end median outlook of analysts surveyed by Bloomberg after Finance Minister Joaquim... Continue Reading →
Junk Bondholders Weigh Emerging-Market Exit
The portion of emerging-market companies in Bank of America Merrill Lynch’s Global High Yield Index has swelled since they were first included four years ago. Petroleo Brasileiro SA became the biggest index member after the Brazilian oil producer was cut to junk by Moody’s Investors Service in February, with $44 billion of debt, according to Bank of America. Russian... Continue Reading →
Bond Traders Problems Persist in Brazil
Bond investors in Brazil just can’t catch a break. After being burned by a bribery scandal at the country’s state-owned oil company, they were buffeted again last week when federal prosecutors probing Brazil’s national development bank said the lender lost out an estimated $2 billion by setting interest rates too low for risky borrowers. The... Continue Reading →
Oil Bear Market Punishes Petrobras Shares
The slide of crude into a bear market sank Petroleo Brasileiro SA, sending the Ibovespa to the longest rout since February 2013. Petrobras, the oil producer at the center of Brazil’s largest corruption scandal, extended a seven-day plunge to 17 percent. Crude traded in New York fell more than 20 percent from its June high... Continue Reading →
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 Energy Insight 