Brazil is likely to halt one of the world's most aggressive rate-hiking cycles on Wednesday, sparing more suffering to a contracting economy despite fears a deepening fiscal crisis could keep inflation high. All but one of the 30 economists surveyed by Reuters last week expected the central bank to hold its benchmark Selic rate at... Continue Reading →
UPDATE 1-Brazil reinstates IOF tax on state bank BNDES loans
Bonds | Tue Sep 1, 2015 11:27am EDT Reuters UPDATE 1-Brazil reinstates IOF tax on state bank BNDES loans (Reuters) - The Brazilian government on Tuesday reinstated a 1.5 percent financial transaction tax on loans from state development bank BNDES , part of efforts to discourage subsidized lending and narrow the country's swelling budget deficit.... Continue Reading →
Fitch says Brazil’s slipping budget target shows fiscal trouble
Bonds | Tue Sep 1, 2015 10:39am EDT Reuters Fitch says Brazil's slipping budget target shows fiscal trouble The Brazilian government's first-ever budget bill with a primary deficit underscores the growing risks to its public finances, a Fitch Ratings analyst said on Tuesday, adding to concerns that the country could lose its investment-grade credit rating.... Continue Reading →
Petrobras Sinks With Ibovespa as UBS Cuts Profit Outlook by 80%
The outlook for Petroleo Brasileiro SA worsened further after UBS AG cut its earnings projection by 80 percent, spurring a slide in the oil producer at the center of Brazil’s largest graft probe. The Ibovespa followed a selloff in global stocks. Shares of Petrobras extended a plunge over the past year to 63 percent, more... Continue Reading →
Brazilian Real – black August
The Brazilian currency is heading for the second worse monthly performance since 1999. At 3:13 pm, this 31st of August, the real was down 1.38% or approximately 6% for the month of August, to R$3.6347 for one US dollar. For the year, the Real is the worst performing currency against the USD in a list... Continue Reading →
Junk-Rating Dread Sends Brazil Stocks to Biggest Slump in World
Brazilian stocks and the real led global losses on speculation that Latin America’s largest economy is struggling to put its finances in order and avoid a credit-rating downgrade to junk. The Ibovespa tumbled 2.9 percent to 45,784.03 at 10:30 a.m. in Sao Paulo, bringing its monthly slide 9.9 percent. The real retreated 2.6 percent to... Continue Reading →
Petrobras reaches deal for reorganization of Sete Brasil
Brazilian state-run oil company Petrobras and other investors reached an agreement to approve the restructuring plan of ailing oil-drilling-rig builder Sete Brasil Participações SA, two leading local newspapers reported on Friday. The plan would pave the way the refinancing of Sete Brasil's $3.8 billion in debt. Shareholders reached a deal for Sete to operate five... Continue Reading →
UPDATE 3-Brazil economy sinks into worse-than-expected recession
Brazil's economy shrank 1.9 percent in the second quarter, sinking into a recession that has hammered President Dilma Rousseff's popularity as she struggles to save the country's investment-grade credit rating amid a vast corruption scandal. The quarterly contraction, reported by government statistics agency IBGE on Friday, was bigger than the median forecast of a 1.7... Continue Reading →
Moody’s cuts 2016 global growth forecasts
Credit rating firm Moody's cut its 2016 global economic growth forecasts on Friday, with China and United States both trimmed and Russia and Brazil seen staying in recession. It was a surprise move from the firm, coming just 10 days since its last forecasts. It put average growth in the top 20 world economies at... Continue Reading →
Brazil’s Real Leads Losses in Latin America
Brazil’s real led losses in Latin America and stocks fluctuated after data showing Latin America’s largest economy entered a recession added to concern corporate earnings will falter. The real lost 0.4 percent to 3.5670 per dollar at 11:50 a.m. in Sao Paulo, extending its weekly slide to 1.9 percent. The Ibovespa fell 0.3 percent to 47,577.93,... Continue Reading →
