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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 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’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 →
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 →
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 →
Concerns that Brazil may lose its coveted investment grade credit rating are again on the rise among government officials and investors who worry that President Dilma Rousseff's austerity push won't fully offset plunging government revenues. As Brazil prepares for a crucial ratings review by Moody's Investors Service in the third quarter, members of Rousseff's economic... Continue Reading →
Brazil’s real is headed for further declines in the next six months if you believe the currency’s three most accurate forecasters. Brazil’s currency was the biggest loser among 16 major currencies tracked by Bloomberg in the first six months of the year, dropping 14 percent. The slide mostly reflected concern regarding the implementation of a... Continue Reading →
The real depreciated 0.9 percent to 3.1255 per dollar at 10:56 a.m. in Sao Paulo. Swap rates, a gauge of expectations for changes in borrowing costs, on the contract maturing in January 2017 decreased 0.1 percentage point to 13.72 percent. Read More
A group of five Brazilian banks will refinance about 11.5 billion reais ($3.6 billion) in loans for ailing Sete Brasil Participações SA for a further 45 days, in a bid to keep the oil rig maker afloat, two sources with direct knowledge of the matter said on Thursday. State banks Banco do Brasil SA and... Continue Reading →
The staying power of an ever-widening corruption scandal in Brazil has bond investors bracing for more pain. That’s stoking pessimism among bond investors already saddled with the worst losses in two years as the damaging effects of the scandal linger seven months after it surfaced. The nation’s dollar-denominated notes have slumped 1.5 percent in the... Continue Reading →
