Brazil’s real climbed for the first time in four days as a central bank official said policy makers should keep raising interest rates, making the nation’s assets more attractive to global investors. The currency led regional gains as Tony Volpon, the bank’s risk-management director, said 2016 inflation expectations need to drop to the official target... Continue Reading →
Key Latin American stock indexes and currencies at 1720 GMT
Key Latin American stock indexes and currencies at 1720 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 934.47 -0.77 -1.53 MSCI LatAm 2,426.18 -0.92 -10.23 Brazil Bovespa 51,819.92 -1 3.62 Mexico IPC 45,593.09 0.59 5.67 Chile IPSA 3918.15 0.46 1.74 Chile IGPA 19,035.25 0.41 0.87 Argentina MerVal 12,183.85 -1.56 42.02... Continue Reading →
Oil Prices Hurt Currencies
Crude oil’s worst run in four months is hurting more than just commodity traders. Currencies from the Norwegian krone to Brazil’s real are tumbling as investors revise economic growth expectations for petroleum-exporting nations. Mexico’s peso slumped to its weakest since a 1993 revaluation, while the Canadian dollar fell to a six-year low. Read More
Brazil’s sovereign wealth fund to sell stake of state bank to meet fiscal plan
Brazil’s sovereign wealth fund has started reducing its stake in Banco do Brasil SA as the government prepares to possibly tap the fund to help meet its fiscal target, said a person with direct knowledge of the matter. Shares dropped the most on the Ibovespa index. The sovereign fund sold 1 million shares of Banco... Continue Reading →
Canada’s Brookfield Asset Management will extend the loan to OAS
A Brazilian court approved a debtor-in-possession loan to engineering firm OAS SA, the company said, after it earlier this year filed for bankruptcy protection in the wake of a corruption investigation that shut its access to refinancing. In a statement published late on Tuesday, OAS said judge Daniel Carnio Costa freed up the so-called DIP... Continue Reading →
Goldman Cuts Brazil Targets
Brazil’s retail sales in May fell more than forecast by all but one analyst, prompting Goldman Sachs Group Inc. to predict a deeper recession in 2015. Swap rates fell. Sales fell 0.9 percent after a revised 0.5 percent decline in April, the national statistics agency said in Rio de Janeiro. That was worse than the... Continue Reading →
Moody’s to Review Brazil Sovereign Rating
Moody's Investors Service is preparing a highly anticipated review of Brazil's credit rating with a visit to Brazilian policymakers and economists this week, market sources and the ratings agency said on Monday. Many analysts expect Moody's to downgrade Brazil's Baa2 credit rating by one notch at the end of its review process. Some fear it... Continue Reading →
Brazil Economic Data – Real Rises against the U$
Brazil’s real climbed to a one-week high as signs of weakness in the U.S. damped prospects for an increase in interest rates by the Federal Reserve and bolstered demand for riskier assets with better returns. Brazil’s economic team sees a credit rating downgrade by Moody’s Investors Service as almost unavoidable, Valor Economico reported Tuesday, without... Continue Reading →
Bond Traders Burned By Odebrecht are in for More Pain
For bond investors in Brazil’s biggest construction company, the pain may have just begun. Odebrecht Finance’s $519 million of notes due 2025 have handed traders some of the biggest losses in emerging markets after the group’s chief executive officer was arrested June 19 as part of an unprecedented bribery investigation. The bonds have plunged 11.6... Continue Reading →
Fitch Poll – Brazil Largest Contagion Threat in Emerging Markets
Brazil poses a larger threat of contagion for global financial markets than other emerging economies, far eclipsing Russia and China, Fitch Ratings said on Wednesday, giving highlights of an upcoming survey of European fixed-income investors. The investors, who manage an estimated 7.8 trillion euros in assets, considered economic imbalances, political challenges and U.S. interest rates... Continue Reading →
Brazil Energy Insight 