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The mood in Brazilian financial circles is bordering on euphoric. The real is the best performing currency in the world this year. Stocks have soared more than 30 percent, and bond yields are plunging. All this in a country with unemployment at a four-year high, a ballooning budget deficit, inflation near 10 percent and a... Continue Reading →
Andrade Gutierrez SA, the conglomerate whose top executive was arrested in Brazil’s largest corruption scandal, agreed to pay a 1-billion-real ($286 million) fine as part of a leniency agreement. In an ad entitled "An Apology and Proclamation for a Better Brazil" published in newspaper Folha de S. Paulo, the builder said its leniency agreement was... Continue Reading →
Brazil’s state-controlled oil company Petrobras is seeking a $1 billion loan from the Export-Import Bank of China before originally planned as its debt service costs surge in the coming years amid the worst oil market in a generation. Petroleo Brasileiro SA, as it is formally known, is negotiating a definitive contract with the Chinese lender after... Continue Reading →
Brazilian senators pushed President Dilma Rousseff a step closer to being ousted from office as a special committee decided on Friday there are legal grounds to impeach her. With a tally of 15 against 5, the Senate committee backed a report saying there is enough evidence to try Rousseff on allegations she used illegal financing... Continue Reading →
Brazil was downgraded by Fitch Ratings, which kept a negative outlook on the nation’s debt citing a deeper-than-anticipated recession and political instability. Fitch cut the rating by one level to BB, in line with grades from S&P Global Ratings and Moody’s Investors Service. Fitch had last downgraded Brazil in December. The rating is in line... Continue Reading →
A bargain for shipping tycoon George Economou is bad news for creditors holding $24 billion of distressed offshore-drilling bonds. The Greek billionaire snapped up a drillship called Cerrado for less than 10 percent of its 2011 new-build price, showing how a collapse in crude has driven down the value of offshore equipment. The industrywide slump, which stretches... Continue Reading →
Weatherford International Plc is having its worst day ever, losing a quarter of its value as investors doubt its goal of generating about $3 billion of free cash flow by the end of 2020. The world’s fourth-largest oil services firm was down 25.6 percent to $5.57 at 2:07 p.m., after earlier falling 25.8 percent to... Continue Reading →
Dawn McCarty/Bloomberg May 5, 2016 CHC Group Ltd., a provider of helicopter transport for offshore oil drillers, filed for bankruptcy protection in the U.S. after missing a $46 million interest payment last month. CHC is the latest business driven over the brink by the slump in energy prices. It joins explorers, rig providers and pipeline... Continue Reading →
Bonds issued by Brazil's Odebrecht plummeted on Tuesday after it delayed the release of financial results amid questions about the impact of a corruption probe on its books. One New York-based trader described "panic" selling among holders of the company's debt, noting that news of the postponed results was "unexpected." The 7.125% 2042s and the... Continue Reading →
Repsol SA reported earnings that beat analyst estimates after posting a surprise profit from exploration and production and higher income from refining and chemicals. The shares jumped the most in three weeks. Adjusted net income dropped to 572 million euros ($657 million) in the first quarter from 928 million euros a year earlier, exceeding the... Continue Reading →
