Petrobras – Market value below R$100 billion At the close of the stock market last night, the market value of Petrobras stood at R$99.68 billion. Exactly 5 years ago today, Petrobras celebrated the world’s largest corporate mega capitalization ever of R$125 billion, Petrobras market value jumped to R$321 billion. To many, this was the beginning... Continue Reading →
UPDATE 1-Brazil 5-yr CDS jump to 7-yr high, dollar bonds tumble 2-3 cents
Brazilian debt insurance costs jumped to their highest in almost seven years on Thursday and sovereign dollar bonds fell 2-3 cents across the curve on fears of a deepening political and financial crisis. Other emerging assets also sold off as world stocks slid towards two-year lows but the biggest losses came in Brazil where the... Continue Reading →
These Charts Tell the Story of Brazil’s Economic Turmoil
The selloff in Brazilian assets has picked up pace as President Dilma Rousseff fends off impeachment speculation less than a year into her second term and struggles to win lawmakers’ support for measures to shore up the nation’s accounts. “What is really amazing about it is the speed of the deterioration since the election,” says... Continue Reading →
Emerging Markets Are Facing a Big Foreign FX Debt Bill
The extent of emerging markets' foreign-currency borrowing binge is laid bare in new number-crunching from CreditSights. With EM currencies down a collective 15 percent since the start of the year, the cost of repaying debt and loans denominated in foreign currencies, such as the U.S. dollar and the euro for EM countries, is likely to increase. With that scenario in... Continue Reading →
Cunha Says Misdeed in Prior Term May Justify Brazil Impeachment
Brazil’s lower house leader Eduardo Cunha gave opponents of President Dilma Rousseff hope by saying in a report he may be able to accept an impeachment request that is based on misdeeds committed in a prior presidential term. Opposition leaders have filed a request with Cunha to impeach Rousseff based on charges she doctored fiscal accounts,... Continue Reading →
Brazil Real opens at 4.23 to the dollar
Despite the the U$5 billion intervention by the Brazilian Central Bank yesterday, the Real opened at R$4.23 to the USD. At 9:30 BRT the dollar has settled at R$4.2184, a gain of 1.76% over last night closing. Some analysts say that the USD could reach as high as R$5.00 by the end of the year... Continue Reading →
Brazil Supreme Court votes to spin off part of corruption probe
Brazil's Supreme Court voted on Wednesday to move part of the country's largest-ever corruption probe to another judge, challenging the notion that all pieces of a case that initially focused on state-run oil firm Petrobras are legally linked. Justice Dias Toffoli argued that an investigation into whether President Dilma Rousseff's former chief of staff Gleisi... Continue Reading →
Brazil Real Tumbles to New Record Low as Investors Rush to Sell
Brazil’s real fell for a fifth consecutive day and reached a new record low, with the rout in the currency gaining momentum as investors sell amid concern the country’s finances are deteriorating. Even as the central bank intervened to support the real, the currency tumbled 2.3 percent as of 4:47 p.m. in Sao Paulo to... Continue Reading →
Petrobras Riskier Than Argentine Peer Shows Confidence Collapse
To see the damage done to bondholders of Brazil’s flagship oil company, just compare its yields to those of its lower-rated peer across the border in default-prone Argentina. The rout in notes from the world’s largest junk-rated corporate issuer means Petroleo Brasileiro SA’s borrowing costs are now higher those for YPF SA, the oil company... Continue Reading →
Brazilian Real 1993-2015
Brazilian Real 1993-2015 The USD traded at 4.13 BRL on Wednesday September 23, according to interbank foreign exchange market quotes. The Brazilian Real averaged 1.88 from 1993 until 2015, reaching an all time high of 4.13 in September of 2015 and a record low of 0.01 in January of 1993.
Brazil Energy Insight 