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Feb 27, 2015

Brazil fiscal surplus surprises, but austerity hits job market

BRASILIA/SAO PAULO, Feb 27 (Reuters) – Brazil’s
bigger-than-expected budget surplus showed on Friday that a new
finance minister was delivering on promises, but heavy job
losses underscored the likelihood that austerity would push the
economy back into recession.

2015 began with the heaviest layoffs in six years, according
to labor data on Friday, pushing unemployment to a one-year high
in a trend likely to further erode President Dilma Rousseff’s
slumping popularity.

Feb 26, 2015

Brazil posts lowest central government surplus in 7 years

BRASILIA, Feb 26 (Reuters) – Brazil’s central government
posted its lowest primary budget surplus for the month of
January in seven years, Treasury data showed on Thursday,
highlighting the challenges the government faces to meet its key
fiscal target this year.

The central government, which covers federal ministries, the
central bank and social security, had a primary surplus of
10.405 billion reais ($3.61 billion) in January. It posted a
surplus of 1.039 billion reais in December.

Feb 25, 2015

Brazil sees no need to capitalize Petrobras: sources

BRASILIA (Reuters) – Brazil has no plans to pump new capital into Petrobras, even after a debt-rating downgrade by Moody’s Investors Service threatens to limit the cash-strapped oil company’s access to finance and raise its borrowing costs, two government officials told Reuters on Wednesday.

Late on Tuesday, Moody’s Investors Service cut the rating on foreign debt of Petroleo Brasileiro SA (PETR4.SA: Quote, Profile, Research, Stock Buzz), as state-run Petrobras is formally known, by two notches to Ba2 from an investment grade Baa3. It kept the company on review for a further downgrade, citing concerns over an corruption scandal and liquidity pressures.

Feb 25, 2015

Brazil seeks to extend auto quota with Mexico for up to 5 years – sources

MEXICO CITY/BRASILIA, Feb 25 (Reuters) – The Brazilian
government wants to extend a restrictive auto quota with Mexico
for up to five years, sources close to the negotiations said.

A renewed quota would avoid the free trade of vehicles set
to begin when the current agreement expires on March 19.

Feb 25, 2015

Brazil sees no need to capitalize Petrobras despite downgrade-sources

BRASILIA, Feb 25 (Reuters) – Brazil currently has no plans
to capitalize Petrobras despite market fears the state-run oil
company could need fresh capital after Moody’s cut its credit
rating to junk, two government officials told Reuters on
Wednesday.

Moody’s Investors Service cut Petrobras’ rating late on
Tuesday by two notches to Ba2 from an investment grade Baa3 and
kept the firm on review for further downgrade, citing concerns
over an ongoing corruption scandal and liquidity pressures.

Feb 24, 2015

Brazil aims for fiscal savings of $28 bln in 2015 -source

BRASILIA, Feb 24 (Reuters) – The Brazilian government is
working on a savings plan of around 80 billion reais ($28
billion) to meet its fiscal goal this year, a government
official told Reuters on Tuesday.

Finance Minister Joaquim Levy told allied lawmakers late on
Monday the government is working on such a plan but “will not
make an adjustment of around 80 billion reais only with (budget)
cuts,” said the official, who was present at the meeting and
asked for anonymity to speak freely.

Feb 23, 2015

Analysis: As states tighten belts, Brazil edges closer to recession

BRASILIA (Reuters) – Brazilian states and cities are scrambling to raise taxes and cut spending after years of excesses, nudging an already weak national economy closer to recession.

Growing budget deficits, the biggest in more than a decade, have prompted some states to temporarily suspend payments to suppliers and freeze billions of reais in services and infrastructure projects, from road maintenance to healthcare facilities.

Feb 23, 2015

As states tighten belts, Brazil edges closer to recession

BRASILIA, Feb 23 (Reuters) – Brazilian states and cities are scrambling to raise taxes and cut spending after years of excesses, nudging an already weak national economy closer to recession.

Growing budget deficits, the biggest in more than a decade, have prompted some states to temporarily suspend payments to suppliers and freeze billions of reais in services and infrastructure projects, from road maintenance to healthcare facilities.

Feb 20, 2015

Mexico, Brazil move to bridge differences over auto pact

BRASILIA, Feb 20 (Reuters) – Brazil and Mexico said on
Friday they advanced in talks over a soon-to-expire auto treaty
that establishes a quota for trading light vehicles free of
tariffs and their negotiators will meet again on Feb. 27 in
Mexico City.

“The Brazilian and Mexican governments reiterate their
interest in the rapid conclusion of these negotiations that will
strengthen bilateral relations between Latin America’s two
largest economies,” a Brazilian trade ministry statement said.

Feb 19, 2015

Brazil to seek lower auto quota with Mexico to shield industry -sources

BRASILIA, Feb 19 (Reuters) – Brazil will seek to reduce the
dollar amount of vehicles that Mexico sells duty-free to the
South American nation, two sources familiar with the matter said
on Thursday, raising tensions in upcoming trade negotiations
between Latin America’s largest economies.

Mexican and Brazilian officials will start talks on Friday
over an automotive treaty due to expire on March 19. Mexico is
pushing to upon up trade as its auto industry booms, while
Brazil wants to renew a quota on light vehicles that protects
its struggling factories.

    • About Alonso

      "Alonso has worked for more than a year covering commodities in the world's top copper producer Chile. A native of Nicaragua he has workers for Thomson Reuters for nearly five years with several stints in other Latin American countries. He is a University of Missouri-Columbia graduate."
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