Walter's Feed
May 22, 2015

Brazil central bank chief vows to slash inflation by end-2016

RIO DE JANEIRO, May 22 (Reuters) – Brazil’s central bank
chief on Friday renewed his commitment to slash inflation to the
center of a government target by the end of 2016, signaling more
interest rate hikes in Latin America’s largest economy.

Speaking at a central bank event in Rio de Janeiro,
Alexandre Tombini stressed that policymakers would remain
“vigilant” to ensure the inflationary impact of sharp rises in
government-managed prices this year does not spread out into
2016 and beyond.

Apr 30, 2015

Brazil central bank to roll over fewer swaps after record loss

RIO DE JANEIRO, April 30 (Reuters) – Brazil’s central bank
signaled on Thursday that it will reduce the roll over pace of
currency swaps that expire in June, a move that could weigh down
the real.

The signal comes as the bank paid a record 34.5 billion
reais ($11.5 billion) in March to holders of those swaps, which
are derivatives that provide investors with protection against
currency losses, boosting the value of the Brazilian currency.

Apr 17, 2015

Investors tiptoe back into Brazil markets as inflation peaks

RIO DE JANEIRO, April 17 (Reuters) – Some investors are
carefully betting that the recent selloff in Brazilian financial
markets was overdone, pointing to signs that inflation is
slowing and the government is getting its finances in order.

Many expect inflation will come down from its current
11-year high of 8.13 percent, thanks to the central bank’s
interest rate hike cycle of 1.75 percentage points since
October, as well as the economic slump’s effect on demand.

Apr 9, 2015

Fitch warns of possible Brazil downgrade as economy falters

RIO DE JANEIRO, April 9 (Reuters) – Fitch Ratings on
Thursday warned it may cut Brazil’s credit rating in the next
couple of years if the economy deteriorates further while
President Dilma Rousseff’s tries to correct macroeconomic
imbalances during her second term in office.

Fitch revised the outlook on Brazil’s BBB credit rating to
negative from stable, a widely-anticipated move that put it in
line with competing ratings firm Moody’s Investors Service. So
far, only Standard & Poor’s has downgraded the country to
BBB-minus, the edge of speculative territory.

Mar 13, 2015

Brazil opts not to support world’s worst-performing currency

RIO DE JANEIRO, March 13 (Reuters) – Faced with the world’s
fastest-weakening currency, Brazilian policymakers have resorted
so far to an unexpected strategy – quietly sitting on their

The real has weakened 13 percent so far in March,
making it the worst performer among the 152 currencies tracked
by Reuters.

Mar 10, 2015

Currencies plunge in global sell-off, domestic problems bite

LONDON/RIO DE JANEIRO, March 10 (Reuters) – Emerging market
currencies sold off on Tuesday as a combination of U.S. interest
rate fears, Chinese data and Greece concerns drove the Mexican
peso to its weakest point ever and pushed several other
currencies to multi-year lows.

Currencies from countries with more fragile economies and
political problems suffered the most, with the Turkish lira
trading near a record low and the Brazilian real
sliding for a seventh straight session.

Mar 9, 2015

Brazil’s real weakens sharply on political, fiscal concerns

RIO DE JANEIRO, March 9 (Reuters) – The Brazilian real
tumbled early on Monday in its sixth straight session of losses
as investors feared President Dilma Rousseff will lack the
political strength to impose austerity measures needed to meet a
crucial fiscal goal this year.

The real slid more than 1.5 percent to as much as
3.1098 per dollar as investors grew increasingly worried about
the unity of Rousseff’s political coalition, which has been
weakening as a corruption probe at state-run oil company
Petrobras implicates many of her allies in Congress.

Feb 20, 2015

Petrobras could cost 5 percent of Brazil GDP in bailout: Moody’s

RIO DE JANEIRO (Reuters) – State-run Petroleo Brasileiro SA could cost Brazil an amount equal to 5 percent of its gross domestic product in the event of a Treasury bailout, a senior analyst with Moody’s Investors Service said, underscoring the potential impact on public finances of a massive corruption scandal at the oil firm.

The likelihood of a $110 billion debt bailout remains low but has been increasing as Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz) fails to publish audited financial results, Mauro Leos told Reuters in a Thursday interview.

Jan 22, 2015

Brazil risks recession as central bank bucks global trend, raises rate

SAO PAULO/BRASILIA (Reuters) – Brazilian President Dilma Rousseff’s crusade to win back investor confidence has entrusted policymakers with the tough mission of hiking interest rates while major central banks cut them, raising the prospect of another recession in Latin America’s biggest economy.

As it boosted the benchmark Selic rate to 12.25 percent on Wednesday, the third consecutive rate hike since Rousseff won re-election in October, Brazil’s central bank sought to deliver on its pledge to do “whatever it takes” to bring down inflation currently running at about 6.5 percent annually.

Dec 26, 2014

Petrobras hit with U.S. class action suit over $98 billion in securities

By Walter Brandimarte

(Reuters) – Brazil’s state-run oil company Petroleo Brasileiro SA and some of its executives were hit with a U.S. class action lawsuit by investors in $98 billion of the company’s securities over an alleged kickback and bribery scheme.

News of the case helped knock Petrobras shares more than 4 percent lower. In mid-December, the stock hit its lowest in nearly 10 years as a widening corruption probe caused the company to delay the release of its third-quarter earnings.