Rio de Janeiro, May 06, 2016 – Petróleo Brasileiro S.A. – Petrobras hereby answers to the Official Letter No. 194/2016/CVM/SEP/GEA-1, which requests the following clarifications: Official Letter No. 194/2016-CVM/SEP/GEA-1 “Mr. Director, 1. We refer to the news item published on May 04, 2016, in the newspaper O Estado de São Paulo, Business & Economy section,... Continue Reading →
Commentary: Why Rousseff’s impeachment battle is bad for Brazil – but could be good for democracy
Latin America was synonymous with political instability throughout the 20th century. The specter of military coups faded in the 1980s, yet political crises -- like the one now engulfing Brazilian President Dilma Rousseff -- still plague the region. If Rousseff loses her looming impeachment battle over claims of illegal accounting, she will be the 18th elected... Continue Reading →
Brazil Detains Former Rousseff Finance Minister Mantega
Brazilian police detained former Finance Minister Guido Mantega for questioning in relation to alleged tax benefits granted to companies in exchange for bribes, Brazil’s leading newspapers reported. The detention on Monday comes only days before President Dilma Rousseff faces a key vote in the Senate that could temporarily remove her from office on charges of... Continue Reading →
For Rousseff-Hating Investors, a Bullish Trade Becomes Personal
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 to Pay $286 Million Fine in Leniency Agreement
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 →
Petrobras Seeks $1 Billion China Loan Faster Than Planned
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 →
Brazil Senate Committee Pushes Rousseff Closer to Her Ouster
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 Cut by Fitch, Outlook Negative on Political Gridlock
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 →
Billionaire’s Bargain Reveals Risks for Offshore-Oil Creditors
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 Falls Most Ever as Investors Doubt Growth Plans
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 →
