Petroleo Brasileiro SA, the state-controlled oil producer with $55 billion of overseas bonds, is among the Brazilian companies most at risk of seeing leverage ratios swell as the real posts the world’s biggest currency losses. For Petrobras, the electric utility known as Eletrobras, airline Gol Linhas Aereas Inteligentes SA and mall operator General Shopping Brasil... Continue Reading →
Not Even World’s Highest Rates Keep Foreigners in Brazil Bonds
Non-resident holdings of local notes have dropped to the lowest level this year amid growing speculation that President Dilma Rousseff won’t be able to fulfill promises to reduce government spending and shore up finances. Her pledge Monday to shut down 10 ministries and sell properties to raise cash failed to reverse a selloff in risky... Continue Reading →
Traders are More Bearish on Yuan Than They Are on Argentine Peso
In a sign of just how distressed the Chinese market has become, traders are more bearish on the yuan than they are on the currency of Argentina, a country which suffers from a bond default, a stagnant economy and the second-highest inflation in the world. Costs to protect against further declines in the yuan, as... Continue Reading →
Oil Explorers Tumble
Oil and gas producers dropped to their lowest level in almost four years as collapsing markets in China heightened concern that demand will falter in the world’s second-largest destination for crude, aggravating a glut from North American shale and the Persian Gulf. An index of 40 energy explorers declined 3.7 percent at 10:30 a.m. in... Continue Reading →
Brazilian Real Leads Latin America Currency Rout Amid Sell-Off
The real plunged to a 12-year low, leading losses for Latin American currencies amid a global rout spurred by concern that the economic slowdown is worsening in China, Brazil’s largest trading partner. An index of the region’s currencies fell to the lowest since at least 1992, while Chile’s peso sank to the weakest in 12... Continue Reading →
Brazil Has Yet Another Big Mess on Its Hands After State Default
Engulfed by political and economic crises, Brazil can ill-afford to be beset by more problems. Yet that’s exactly what is happening after its southernmost state of Rio Grande do Sul defaulted on a 280 million real ($80.9 million) payment to the federal government this month -- the first since the nation’s municipal-debt meltdown in 1997.... Continue Reading →
Petrobras – Clarification of News Item: Payment of fine for the winding up of investigations in the United States
Petrobras - Clarification of News Item: Payment of fine for the winding up of investigations in the United States 08/19/2015 Rio de Janeiro, August 19, 2015 – Petróleo Brasileiro S.A. – Petrobras hereby declares that, in relation to news published in the media concerning the payment of a fine to the U.S. authorities, there are... Continue Reading →
Brazilian Real’s Volatility Rises
The Brazilian real’s volatility climbed to a one-week high as the unemployment rate increased more than forecast, damping prospects as the nation faces its longest recession since the 1930s. Moody’s Investors Service cited a lack of political consensus on attempts to repair government finances as well as a faltering economy when it cut Brazil to... Continue Reading →
Brazil’s Stock Exchange Is Nearing a Bear Market
A plunge in the Ibovespa from this year’s peak put the equity gauge on the brink of a bear market amid forecasts Latin America’s largest economy is headed toward the longest recession since the 1930s. The stock benchmark led world losses, extending its slump since May 5 to 20 percent, as lender Itau Unibanco Holding... Continue Reading →
Brazil Set for Longest Bond Drought on Record
Brazil is close to hitting its longest stretch ever without selling new bonds abroad. The Treasury hasn’t sold new notes in international markets since its $1 billion issue of 2025 bonds in September 2014 as a deepening recession and a widening political crisis drove Brazil’s credit rating to the cusp of junk. If the government... Continue Reading →
