Pessimism about Brazil deepened this week after Standard & Poor's downgraded both the sovereign and Petrobras to junk status, reigniting fears of forced selling in a country sinking fast into high-yield territory. The other agencies are expected to follow suit soon, further clouding the picture for Brazil, which is undergoing its worst economic crisis in... Continue Reading →
Brazil investigators aim to question Lula in corruption probe
Brazil's Supreme Court said on Friday it had received a request from federal investigators to question former President Luiz Inacio Lula da Silva in a political kickback scheme engulfing the state-run oil company. According to a motion filed with the court, federal police suspect the former president "may have benefited" from a political kickback scheme... Continue Reading →
Brazil likely to lose investment grade by other agencies: Reuters poll
At least one other rating agency is likely to withdraw Brazil's investment grade this year as renewed efforts to cut a budget deficit will probably fail, a Reuters poll showed, potentially deepening the country's economic and political crisis. All but one of 26 economists surveyed by Reuters on Thursday expect Brazil's rating to be cut... Continue Reading →
Brazil Real Volatility at Six-Month High After S&P Downgrades
Brazil’s real volatility climbed to a six-month high as traders weighed whether Standard & Poor’s move to cut the nation’s credit rating to junk will prompt lawmakers to work with the government to shore up the budget. One-week implied volatility on options for the real, reflecting projected shifts in the exchange rate, increased to 26.83 percent... Continue Reading →
Aker Solutions Appoints José Formigli to Innovation Board
Aker Solutions Appoints José Formigli to Innovation Board September 10, 2015 - Aker Solutions has appointed José Formigli to its innovation board and to serve as an adviser for overall strategic decisions. Formigli, a Rio de Janeiro native and engineer by training, has more than 30 years' experience in the oil and gas business, starting... Continue Reading →
Petrobras – Standard & Poor’s reviews Petrobras’ global ratings
Petrobras - Standard & Poor’s reviews Petrobras’ global ratings 09/10/2015 Rio de Janeiro, September 10, 2015 – Petróleo Brasileiro S.A. – Petrobras informs that the rating agency Standard & Poor’s (S&P) announced the revision of Petrobras' corporate debt rating from BBB- to BB. With this grade Petrobras is no longer an Investment Grade company for... Continue Reading →
Petrobras agrees two-month deal supplying naphtha to Braskem
Petrobras agrees two-month deal supplying naphtha to Braskem SEPT 10/Reuters Brazil's state-run oil company Petroleo Brasileiro SA said on Thursday it agreed to supply naphtha to Latin America's largest petrochemical producer Braskem for two more months as the companies keep negotiating a long-term contract. The contract has been under intense scrutiny after prosecutors charged executives... Continue Reading →
Exclusive: Petrobras spending plan already obsolete, new cuts likely
Brazil's state-run oil company Petrobras, which slashed its five-year spending plan by 40 percent in June, will likely cut back further as growing debt costs, falling oil prices and a weak currency have already made the plan obsolete, two company sources told Reuters on Thursday. Standard & Poor's decision to cut Brazil's sovereign credit rating... Continue Reading →
Petrobras Crowned New King of Junk Bonds After Rating Downgrade
There’s a new king in the $2 trillion global junk bond market. Brazil’s state-owned oil producer Petroleo Brasileiro SA, with $56 billion of outstanding securities, has become the world’s largest non-investment grade corporate issuer after Standard & Poor’s cut its credit rating seven months after a similar move by Moody’s Investors Service. The Rio de... Continue Reading →
Fat Paycheck, Lifetime Tenure: the Sweet Civil Service in Brazil
One reason for goldplated government jobs was a program five decades ago to lure qualified Brazilians from the beaches of Rio de Janeiro to the arid savanna of the new capital, Brasilia. This exacerbated fierce distortions in the economy: Brazilians pay unusually high taxes to finance a bloated state sector that provides poor public services.... Continue Reading →
Brazil Energy Insight 