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Just when bond investors were getting comfortable with the idea that most of the fallout from Brazil’s largest bribery probe was behind them, new arrests are sending a painful reminder that it isn’t over yet. Bonds issued by Odebrecht SA plunged on Friday after Chief Executive Officer Marcelo Odebrecht was detained by police investigating allegations... Continue Reading →
Brazilian President Dilma Rousseff’s approval rating dropped to the lowest level of any leader since the impeachment of former president Fernando Collor de Mello in 1992, amid corruption scandals and a slowing economy. Read More
In arresting Marcelo Odebrecht, Brazilian federal prosecutors have netted themselves a whale. Odebrecht’s journey from heir and leader of one of Brazil’s largest family business empires and most influential companies to a jail cell in Curitiba is an economy-shaking development in the unfolding Petrobras bribery scandal that suddenly shows no signs of abating. Read More
The Brazilian Congress’s lower house will “easily approve” a bill to relieve Petrobras of its obligation to operate new oilfields in the so-called pre-salt offshore area, according to the chamber’s president. Read More
Brazilian banks will need to increase provisions set aside for losses on loans to Odebrecht SA after its chief executive officer was arrested Friday, people familiar with Brazil accounting requirements said. Read More
Multi-point price drops in bonds issued by Odebrecht dominated LatAm credit markets' attention on Friday following news that the Brazilian construction firm's CEO had been arrested. Read More
The arrest of 46-year-old Odebrecht, who has personal ties to former President Luiz Inacio Lula de Silva, could bring the scandal closer to the political heart of the ruling Worker's Party, already weakened by Brazil's largest ever corruption investigation known as "Operation Car Wash."
The real fell the most among major currencies as Brazil braced for its worst recession in 25 years after the central bank reported that the economy contracted more than forecast in April. Read More
Economic activity in Brazil fell sharply in April from March, worse than already negative market estimates and showing still more evidence the once-booming economy is heading toward a recession. The Brazilian central bank's IBC-Br economic activity index , a gauge of farming, industry and services activity, fell 0.84 percent, more than double market expectations for... Continue Reading →
For Petrobras investors battered by years of mismanagement, a new chief executive officer went from villain to hero in a matter of weeks. The critical question now: Can he keep his reformist streak going -- and with it a strong rally in Petrobras shares? Read More
Brazil Energy Insight 