August 28, 2014
Walter Brandimarte – Reuters, 8/27/2014
Investors are warming up to a possible victory by Marina Silva in Brazil’s presidential election as the popular environmentalist emerges as their best shot at avoiding four more years of a government they strongly dislike.
Disdain for President Dilma Rousseff’s leftist policies runs so deep in Brazilian financial markets that one comment making the rounds there says: “Marina is like Russian roulette, but Dilma is like a fully-loaded revolver.”
It captures the mistrust that many investors feel toward Silva, whose history of volatile decisions, lack of executive experience and emphasis on eco-friendly policies, even at the possible expense of economic growth, have all raised red flags.
April 16, 2014
Simon Romero & Landon Thomas Jr – The New York Times, 4/15/2014
No company has embodied Brazil’s rise like the oil giant Petrobras.
Bolstered by some of this century’s largest oil discoveries, Petrobras soared into the top ranks of global energy producers. Executives at the state-controlled company boasted that it could even outstrip Apple as the world’s most valuable publicly traded company. Political leaders here said Brazil was on the cusp of energy independence.
Now Petrobras is coming to symbolize something else entirely: the disarray afflicting Brazil’s sluggish economy and the reassessment of growth prospects in emerging markets around the world.
September 19, 2013
Brian Winter – Reuters, 09/18/2013
Every time Brazil and the United States get to the altar, the roof of the church seems to collapse.
In 1982, U.S. President Ronald Reagan traveled to Brazil for a dinner banquet meant to herald a new era in ties between the Americas’ two biggest countries. But when Reagan raised his wine glass and toasted “the people of Bolivia,” it seemed to confirm his hosts’ worst fears: that the United States saw Brazil as just another poor country in its so-called backyard.
This week, hopes for a breakthrough fell apart once again, in even more dramatic fashion.
March 7, 2013
The New York Times – Associated Press, 03/07/2013
Brazil’s congress has overridden the presidential veto of part of a new law that gives a greater share of royalty revenues from the country’s vast oil fields to non-producing states.
The new law aims to share oil royalties more evenly among Brazil’s 27 states instead of favoring top oil producers such as the states of Rio de Janiero, Espirito Santo and Sao Paulo.
Congress approved the law late last year but President Dilma Rousseff vetoed the part that decreased the percentage of petroleum royalties going to producing states from 26.25 percent to 20 percent. Non-producing states that now receive 7 percent are to see their share increase to 21 percent.
February 8, 2013
Alonso Soto and Luciana Otoni – Reuters, 02/08/2013
Brazilian Finance Minister Guido Mantega told Reuters European countries should focus on reviving their economies with more investments, rather than trying to weaken the euro to protects jobs as France has suggested ahead of next week’s meeting of G20 economic powers.
“We will continue to have this currency problem unless the global economy takes off,” Mantega said in an interview late Thursday. “The solution here is to make their economies more dynamic and jolt them out of stagnation.”
More than two years ago Mantega used the term “currency wars” to describe the series of competitive devaluations adopted by rich nations to bolster their exports amid the global slowdown to the detriment of emerging market nations.
February 7, 2013
Blake Schmidt, Marisa Castellani – Bloomberg, 02/07/2013
Brazil’s real rallied the most among emerging-market currencies as the central bank said high inflation requires attention, spurring speculation that policy makers will let the currency strengthen to contain prices.
Swap rates climbed after the government reported that consumer prices increased in January at the fastest pace in almost eight years, adding to bets on a boost in borrowing costs. The exchange rate and tax cuts will help slow inflation, a central bank board member said in a phone interview, asking not to be identified because of internal policy.
“Higher inflation shoots the real up,” Joao Paulo de Gracia Correa, currency manager at Correparti Corretora, said in a phone interview from Curitiba, Brazil.
February 6, 2013
Rogerio Jelmayer – Fox Business/Dow Jones Newswires, 06/02/2013
An increase in lending is seen as essential if Brazil is to jump-start economic growth. While lending has more than doubled over the past 10 years, the pace of growth fell in 2012 and has been blamed, in part, for disappointing growth in 2012.
In 2012, lending by all banks increased 16.2% to a record of nearly 2.4 trillion Brazilian reais ($1.2 trillion). But that was the lowest expansion in years. By comparison, lending rose 19% in 2011 and 21% in 2010.
Brazilian gross domestic product expanded by only 2.7% in 2011 and by an estimated 1.0% last year. The consensus forecast for 2013 is better at 3.1% but still lags behind developing-country rivals China and India.