Brazil's real weakened in early trading on Thursday to around 4.16 to the dollar, nearing its lowest levels in more than a decade, after the central bank surprised markets and held rates stable despite inflation running at more than 10 percent a year. The central bank's monetary policy committee, known as the Copom, kept rates... Continue Reading →
Brazil Balks at Rate Rise, Picks Recession Fight Over Prices
In a surprise decision, Brazil balked at raising interest rates as it wagers the nation’s worst recession in decades will be enough to damp double-digit inflation. Just 15 of 57 analysts surveyed by Bloomberg predicted the outcome, which marks the fourth straight meeting that borrowing cost were kept unchanged at 14.25 percent. The remainder of economists expected... Continue Reading →
Keppel Stops Work for Brazil Client, Takes $160 Million Hit
Keppel Corp., the world’s biggest builder of oil rigs, said it stopped work in the fourth quarter on projects for a Brazilian client that is more than a year behind on its bills, and took a S$230 million ($160 million) charge on the delinquent projects. Sete Brasil Participacoes SA, Keppel’s Brazilian client, is set to discuss... Continue Reading →
One Gallon of Milk Is Now Worth About Two Gallons of Oil: Chart
Crude oil is at a 12-year low and that means it’s even cheaper than milk. The price of one gallon of West Texas Intermediate crude is equivalent to about half a gallon of Class III milk, the benchmark traded on the Chicago futures market. That’s the lowest ratio since 2004. WTI dropped to $26.19 a... Continue Reading →
Shell Fourth-Quarter Profit Plunges as Oil’s Slump Deepens
Royal Dutch Shell Plc, which is buying BG Group Plc in the industry’s largest deal in a decade, expects fourth-quarter profit to drop at least 42 percent after the rout in crude prices deepened. Profit adjusted for one-time items and inventory changes probably shrank to $1.6 billion to $1.9 billion, Shell said Wednesday in a preliminary earnings... Continue Reading →
Brazil’s central bank casts doubt on rate hike as outlook worsens
Brazil's central bank on Tuesday signaled that a worsening recession could force it to abandon plans to aggressively raise interest rates to battle inflation, which recently hit a 12-year high. In an unusual statement hours before the start of a two-day monetary policy meeting, central bank chief Alexandre Tombini said policymakers will take into consideration... Continue Reading →
Fitch: Economic, Fiscal and Political Risks Drove Brazil’s Loss of Investment Grade
The December 2015 downgrade of Brazil's sovereign rating to speculative grade ('BB+'/Negative Outlook) reflected a deeper economic recession, adverse fiscal developments, rising government debt burden, and increased political uncertainty that eroded Brazil's investment grade rating underpinnings, says Fitch Ratings in a new special report. The Negative Outlook highlights continued downside risks surrounding these developments. Brazil's... Continue Reading →
Brazil Recession Deepening With Three Lost Years, IMF Says
Brazil won’t return to growth until at least 2018 after two years of recession and one of stagnation, marking the first time in over a century that Latin America’s largest economy fails to expand for that long, the International Monetary Fund said. The IMF cut Brazil’s 2017 economic forecast to stagnation from 2.3 percent growth as... Continue Reading →
Anti-Rousseff impeachment push in Brazil loses ground
President Dilma Rousseff's opponents within her main coalition partner, the fractious Brazilian Democratic Movement Party (PMDB), are losing hope that they can impeach the leftist leader and replace her with their man, Vice President Michel Temer. A Supreme Court ruling last month that expanded the authority of the Senate, where she has a more... Continue Reading →
Chinese Shipyards See New Orders Fall by Almost Half in 2015
Bloomberg News January 18, 2016 New orders received by Chinese shipbuilders fell by nearly half last year from 2014, suggesting more consolidation is in order as the country’s appetite for raw materials wanes and shipping rates languish at multiyear lows. Shipbuilders in China received new orders amounting to 31.3 million deadweight tons last year, a... Continue Reading →
Brazil Energy Insight 